KEY TAKEAWAYS
- Factory and warehouse leasing activity slowed to its lowest level in nearly a decade, as cautious occupiers deferred expansion plans.
- Factory vacancy edged up on weaker absorption, while warehouse vacancy eased amid a reduction in stock.
- JTC’s rental indices continued to rise, but Savills’ prime factory and warehouse rents declined as occupiers became increasingly cost-conscious.
- Strata industrial prices remained resilient despite softer sales activity, supported by demand for more affordable, shorter-tenure assets.
- Prime business park and high-spec industrial rents outperformed amid a continued flight to quality, while older business park clusters faced elevated vacancy.
- Limited new supply should keep JTC’s rental indices broadly stable in 2026, although performance is expected to diverge increasingly by asset quality.
