Rents inched up 0.4% in Q1.
Singapore’s industrial property market continued its long expansion cycle in Q1 2026, recording its 22nd consecutive quarter of rental growth, though at a slower pace, according to CBRE.
CBRE reports that the JTC All Industrial Rental Index rose by 0.4% quarter-on-quarter, easing from 0.5% in Q4 2025. While occupier demand remains resilient, tenants are becoming more selective, with location quality and asset specifications increasingly driving leasing decisions beyond headline rents. Since its trough in Q3 2020, the index has increased by a cumulative 26.5%.
In the single-user factory segment, rents recorded the strongest growth, rising 1.0% quarter-on-quarter, up from 0.7% in the previous quarter. CBRE attributes the performance to steady demand and new completions including Trans Auto Logistics’ facility at 4B Jalan Besut and Sumitomo Seika Singapore’s plant at 12 Sakra Road. Occupancy in the segment also improved, increasing to 89.2%.
Multi-user factory rents rose 0.5% quarter-on-quarter, accelerating from 0.2% previously. The segment saw several completions, including Smart Food @ Mandai, Azalea Kitchens, and the final phase of Stellar@Tampines, which achieved Temporary Occupation Permit in February 2026. Occupancy edged up to 90.2%.
In the business park segment, rents grew more modestly at 0.3% quarter-on-quarter, slightly down from 0.4% in Q4 2025. CBRE notes that vacancy rose to 23.3%, largely due to weaker-performing Rest of Island facilities, while newer City Fringe assets continue to benefit from a flight-to-quality trend that supports rental stability. The consultancy highlights a growing divergence in performance within the segment.
Warehouse rents increased by 0.2% quarter-on-quarter, easing sharply from 1.1% in the previous quarter. CBRE points to new supply additions, including Jurong Logistics Terminal 5, Katoen Natie’s ramp-up warehouse at 1 Banyan Place, and a cold-chain facility at 8 Jalan Besut. Occupancy in the segment declined slightly to 89.4%.
Overall, CBRE concludes that Singapore’s industrial market remains in an extended upcycle, but rental growth is becoming more measured as supply additions and tenant selectivity shape a more balanced market environment.