Commentary on JTC's Q1 2026 Statistics

April 24, 2026 -- Commentary on JTC's Q1 2026 Statistics
Rents
Singapore’s industrial market extended its upcycle into a 22nd consecutive quarter of rental growth in Q1 2026, although momentum has slightly eased. The JTC All Industrial Rental Index rose by 0.4% q-o-q, moderating from the 0.5% increase in Q4 2025, signalling a shift towards more measured growth. While occupier demand remains resilient, tenants are increasingly selective, with location and asset specifications becoming key differentiators beyond headline rents. Since the trough in Q3 2020, the JTC All Industrial Rental Index has risen by a cumulative 26.5%.

Among the various market segments, rents for the single-user factory segment increased the most, by 1.0% q-o-q, with momentum accelerating from last quarter’s 0.7% q-o-q growth.

• In Q1 2026, major completions were Trans Auto Logistics’ facility at 4B Jalan Besut and Sumitomo Seika Singapore’s facility at 12 Sakra Road. Occupancy rate for single-user factories increased by 0.4 ppt to 89.2% in Q1 2026.

Rents for the multi-user factory segment increased by 0.5% q-o-q in Q1 2026, accelerating from the 0.2% q-o-q growth in the previous quarter.

• During the quarter, there were two food factory completions – Smart Food @ Mandai and Azalea Kitchens. Also, Stellar@Tampines, a nine-storey strata-titled B2 development, obtained TOP for its final phase in Feb 2026. Occupancy rate for multi-user factories rose by 0.3 ppt to 90.2% in Q1 2026.

Overall rents in the business park segment increased by 0.3% q-o-q, slightly moderating from the 0.4% q-o-q increase in Q4 2025.

• Although overall vacancy rate rose from 22.9% in Q4 2025 to 23.3% in Q1 2026, this is likely attributed to selected facilities in Rest of Island locations, as some encounter challenges in retaining tenants due to less competitive specifications. On the other hand, newer assets in City Fringe locations continue to benefit from flight-to-quality trends which sustain rental growth. Consequently, the two-tiered nature of the business park segment continues to experience divergent performance in rents.

Rents for the warehouse segment rose by 0.2% q-o-q in Q1 2026, easing in momentum from the 1.1% q-o-q increase last quarter.

• During the quarter, there were two notable warehouse completions – Jurong Logistics Terminal 5 (JLT5), Katoen Natie’s two-storey ramp-up warehouse spanning over 400,000 sq. ft. at 1 Banyan Place, and 8 Jalan Besut, a cold-chain food logistics facility which obtained TOP for its final phase which features a high-bay automatic storage and retrieval system on the upper levels. Occupancy rates for the warehouse segment decreased by 0.4 ppt to 89.4% in Q1 2026.

According to JTC’s All-Industrial Price Index, prices rose by 1.2% q-o-q in Q1 2026, with momentum moderating from the 1.4% q-o-q increase in Q4 2025. This marked the eighth consecutive quarter of prices increasing at a faster rate than rents amid strong demand for industrial assets. Domestic interest rates continue to be conducive in supporting industrial transactions, with the 3-month SORA dipping to 1.04% on 23 Apr 2026 compared to 1.19% on 31 Dec 2026. Amid geopolitical uncertainty, investors continue to gravitate towards leasehold industrial assets as they offer stable income and positive carry.

• Prices for the multi-user factory segment increased by 1.7% q-o-q in Q1 2026, slightly easing from the 1.9% q-o-q growth in the previous quarter. However, prices for the single-user factory segment continued to dip by 0.1% q-o-q, albeit at a slower pace compared to the 0.3% q-o-q decline in Q4 2025.

As at end-Mar 2026, there is around 8.00 mil sq. ft. of new industrial space (or around 1.4% of total stock) scheduled for completion over the next three quarters of 2026, with the single-user factory segment accounting for 60.5% of Q2-Q4 2026 supply. The remainder of the pipeline comprises warehouse, multi-user factories and business parks at 30.1%, 6.1% and 3.3% respectively.

For the business park segment, the only project in the pipeline over the next three years is 27 IBP (0.21 mil sq. ft.), scheduled for completion in Q2 2026. With more landlords evaluating asset enhancement initiatives for older business park facilities, this may result in tighter supply.

Economic and manufacturing performance: According to advance estimates from the Ministry of Trade and Industry (MTI), Singapore’s economy contracted in Q1 2026 as GDP dipped by 0.3% q-o-q on a seasonally adjusted basis, a reversal from the 1.3% expansion in Q4 2025. The manufacturing sector expanded by 5.0% y-o-y in Q1 2026, moderating from the 11.4% y-o-y growth in Q4 2025. Among the various manufacturing clusters, output expansions in electronics, transport engineering and precision engineering more than offset output declines in biomedical manufacturing, general manufacturing and chemicals.

Looking ahead, the Middle East conflict that began in end-February may have heightened economic uncertainties in the near term. CBRE observes continued resilience in occupier demand to date, with Singapore’s strong AI related manufacturing sector likely to act as a tailwind.

Prime logistics: Supply pipeline is expected to ease significantly in 2026, with upcoming facilities mostly pre-committed. As at Q1 2026, CBRE’s prime logistics occupancy rate is 95.8%. It is anticipated that this rate may gradually increase to about 97% by end-2026 as occupiers evaluate available space across existing stock to fulfil their expansionary requirements. Therefore, this is likely to result in steady rental growth over the next few quarters for the prime logistics segment.

Johor-Singapore Special Economic Zone (JS-SEZ): The JS-SEZ will allow firms to optimise capital allocation and scale more efficiently by splitting functions across borders—anchoring high value activities such as R&D and regional headquarters in Singapore, while expanding space- and labour intensive operations in Johor. While the JS SEZ master plan was initially targeted for launch in March, its timeline has been pushed to H1 2026 as Johor authorities seek broader inter agency alignment and Cabinet approval to ensure long term policy stability. As greater clarity emerges around the “twinning” approach, execution risk should ease, translating into improved investor confidence and investment commitments.

CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm and a premier provider of critical infrastructure services. The company has more than 155,000 employees serving clients in more than 100 countries. CBRE serves clients through four business segments: Advisory (leasing, sales, debt origination, mortgage servicing, valuations); Building Operations & Experience (facilities management, property management, flex space & experience, critical infrastructure); Project Management (program management, project management, cost consulting); Real Estate Investments (investment management, development). Please visit our website at www.cbre.com.

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