For most industrial segments, rental growth is forecast to be between 0% and 2%.
Singapore’s industrial property market is expected to remain resilient in 2026, although geopolitical tensions and global economic uncertainty are likely to temper growth, according to Savills.
The consultancy said risks stemming from the Middle East conflict, potential oil supply disruptions and ongoing uncertainty surrounding US tariffs could weigh on economic activity, alongside softer global trade and manufacturing conditions.
Despite these headwinds, Savills expects industrial real estate to retain its defensive appeal, supported by lower interest rates, safe-haven capital inflows and committed tenants for new developments. Investor demand is likely to remain focused on high-quality assets offering stable income and long-term value.
Occupiers are also becoming more cautious, with cost sensitivity expected to rise, particularly among small and medium-sized enterprises. Savills said the flight-to-quality trend is likely to continue, with demand increasingly concentrated on modern, well-located and higher-specification facilities.
The consultancy forecasts rental growth of between 0% and 2% for most industrial segments, including multiple-user factories and business parks, while warehouse rents are expected to rise by between 0% and 1%.
Savills added that restructuring within the technology sector could create downside risks for business parks as companies rationalise space requirements. However, demand from new entrants and expansionary occupiers is expected to help support occupancy and keep rents for prime business park assets relatively resilient.