Lower take-up of industrial space in 2009

GLOBAL economic woes triggered a lower take-up of industrial space last year at landlord JTC Corp.

It was hit by a negative net take-up of 24,800 sq m in ready-built factory space last year; a sharp reversal of the positive net take-up of 90,700 sq m seen in 2008.

In prepared industrial land, net take-up was still positive at 101ha last year, although much lower than the 200.9ha in 2008.

Faced with extremely cautious business sentiment during the year, companies took up less space. Ready-built factory space was down on the previous year partly because of a downturn in the business park segment. It saw net take-up in this category drop to 1,100 sq m last year, from 48,300 sq m in the previous year.

JTC explained, however, that the drop in ready-built factory space take-up ‘was from an exceptionally high base in 2008, which benefited from the successful completion and take-up of Fusionopolis Phase 1′.

Termination of its ready-built facilities fell by 18 per cent to 88,800 sq m last year from 108,000 sq m in 2008. About 61 per cent, or 53,900 sq m, of the total of ready-built facilities were terminated by tenants from the manufacturing sector.

Within manufacturing, the precision engineering and electronic segments reported terminations of 17,000 sq m and 16,200 sq m respectively.

Take-up in the prepared industrial land category remained resilient, according to JTC. It said the performance in this category was boosted by a significant fourth-quarter take-up for the integrated yard facility in Tuas, as well as steady take-up for Seletar Aerospace Park.

Last year, the manufacturing sector accounted for 60 per cent of the prepared industrial land that was terminated. The electronic segment of manufacturing registered the highest termination, with 23.9ha given up.

Source : Straits Times – 18 Feb 2010