Warehouse vacancy drops to its lowest level in 8 years

Vacancy edged down to 1.4% in Q2 2022.

Warehouse vacancy dropped to 1.4% in Q2 2022, marking its lowest level since Q4 2014, data from CBRE showed.
 
Rents likewise improved for warehouses, increasing by 2.5% QoQ in Q2 2022. 
 
However, leasing momentum remained slow for other industrial property types. Rents for flatted factories only increased by 0.8% QoQ, whilst rent for industrial offices was flat during the quarter.
 
“The bulk of demand in Q2 2022 came from local 3PLs while requirements from government departments rose once again over the quarter,” CBRE said. 
 
“The significant leasing demand contributed by the Hong Kong government and the improved leasing momentum driven by domestic demand in the first half of 2022 caused industrial properties to outperform other sectors once again,” CBRE added.

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