KEY TAKEAWAYS
- Total leasing activity for factory and warehouse space increased modestly in 2025, with Savills’ basket of prime warehouse and logistics rents recording stronger growth. In contrast, rental growth for prime multiple-user factory space continued to moderate.
- Cautious investor sentiment persisted, weighing on strata industrial sales and leading to a decline in total industrial investment sales in 2025.
- Stronger demand for industrial assets with shorter remaining land tenures supported accelerated price growth for 30-year leasehold industrial properties within Savills’ basket. Conversely, price growth for freehold and 60-year leasehold industrial properties slowed.
- Rental growth in the business park segment strengthened slightly, while high-spec industrial space experienced subdued rental growth in 2025.
- Regional supply chains continue to be reshaped by recent US tariffs and by companies seeking cost advantages in neighbouring countries. Against this backdrop, rental growth for general warehousing space is expected to moderate in 2026, while rents for multiple-user factory space are projected to rise due to their cost-effectiveness.
