Industrial rents grow 1.4% in 2023 

Renewals dominated the leasing market last year.

The rental level of industrial buildings  stabilised with an annual growth of 1.4% in 2023, CBRE reported.

Despite the overall rental growth, the leasing pace in 2023 slowe for  third-party logistics operators (3PLs, with warehouse rents dropping 1.1% YoY.

“The leasing market was dominated by renewals in 2023 as tenants adopted a wait-and-see approach. The availability of new supply of 4.1 million sq. ft. lettable area added from Cainiao Smart Gateway in late 2023 doubled the overall vacancy from 3.1% in Q3 2023 to 6.6% in Q4 2023," Colliers said.

Colliers expects 2024 to be more "favourable" as new energy vehicles and health-related food manufacturing sectors  drive opportunities in the industrial market.