New demand remains measured amid lingering geo-economic uncertainties

• Demand for higher-specification logistics/warehouse spaces held firm in Q4 2025. There were some requirements from manufacturers, logistics service providers and e-commerce firms seeking strategic relocation or expansion space.
• New warehouse openings included the YCH New DistriPark at Tuas, Nippon Express’ Tuas Global Logistics Centre Extension Building and Dimerco’s new 35,000-sq ft logistics facility at 80 Alps Avenue within the Airport Logistics Park of Singapore (ALPS).

Limited new supply since Q3 2025

• New completions remained limited in Q4 2025. These included Nippon Express’ new extension at 29 Tuas Avenue 13 and Sankyu’s Tuas Distribution Hub at 20 Tuas Avenue 13. We also understand LogisHub @ Clementi was withdrawn for redevelopment.
• Notwithstanding, full-year 2025 net space additions reached an eight-year high following the surge in new completions in H1 2025.

Despite market challenges, rents and capital values end 2025 on a stable footing

• The islandwide average logistics/warehouse rent remained unchanged for the sixth consecutive quarter. Stable rent and healthy investor demand underpinned another quarter of steady capital values and yields in Q4 2025.
• Notable deals included CapitaLand Ascendas REIT’s purchase of 2PS1 from Vita Partners (SGD 176.62 million) and Brookfield Asset Management’s acquisition of the assets at 46A Tanjong Penjuru (SGD 113.5 million) and 24 Jurong Port Road (SGD 68.0 million) from ESR-REIT.

Outlook: Potential upside in rents and capital values

• Demand for higher-specification logistics/warehouse premises is expected to stay healthy. Amid lower supply, rents could return to a growth trajectory in 2026, albeit modestly, as occupiers are expected to remain cost-conscious.
• Future rent growth prospects, a lower-than-previously envisaged interest rate environment and sustained investor demand, especially for good-quality logistics/warehouse assets, could see capital value growth outpacing rent growth by end-2026, tightening yields.