Page 42 - 12Mar_Sabana AR 2011 Cover.pdf, page 1 @ Preflight ( 12Mar_S

SABANA SHARI’AH COMPLIANT REIT 40
3.4 Demand and Occupancy
Annual demand for private factory space over the
past decade averaged 7.8 million sq ft, while average
annual supply for the same period was 8.3 million sq
ft. Demand for private factory space has consistently
been healthy despite the apparent fall in demand in
2009. This apparent fall was due to annual supply and
annual demand in 2008 being much higher than normal.
Annual demand for private factory space in 2011 was
10.9 million sq ft, while annual supply was 9.7 million
sq ft (Figure 1.5).
Figure 1.5
Annual Supply, Demand and Occupancy of Island-
wide Private Factory Space
Occupancy rates for private factory space have also
been consistently healthy, posting more than 90%
overall since 2006 despite the drop in 2009 due to a
large amount of new completions. Overall occupancy
of private factory space in 2011 stood at 92.4%, a
marginal increase of 0.2 percentage points from the
91.7% in 2010.
Specifically, occupancy levels of private single-user
factory space have consistently surpassed that of both
private multiple-user factories and business parks,
owing to most single-user factories being built-to-suit
premises usually for owner-occupation. Occupancy
for private single-user factories, multiple-user factories
and business parks was 94.5%, 89.4% and 80.0%
respectively in 2011 (Figure 1.6). All three types of
factories posted an increase in occupancy in 2011
especially that for business parks, as tenants started
taking up the large supply of business park space which
came on stream in 2010.
Figure 1.6
Occupancy by Factory Type
Source: URA, DTZ Consulting, February 2012
3.5 Multiple-user Median Rents
Median rents for private multiple-user factory space in
2011 surpassed its previous peak of $1.73 per sq ft per
month in Q3 2008, reaching $1.78 per sq ft per month
in Q1 2011, buoyed by exuberant economic growth in
2010. Median rents have increased 16.2% from $1.64
per sq ft per month in 2010 to reach $1.91 per sq ft per
month in 2011 (Figure 1.7).
Figure 1.7
Median Rents for Private Multiple-user Factory
Space
Source: URA, DTZ Consulting, February 2012
3.6 Multiple-user Median Prices
Median prices of private multiple-user factories posted
larger YOY increases compared to median rents.
Median prices have increased by 27.1% from $373
per sq ft in 2010, to $474 per sq ft 2011 (Figure 1.8),
compared to median rents which increased by 16.2%.
100
95
90
85
80
75
70
2.50
2.00
1.50
1.00
0.50
0.00
40
30
20
10
0
-10
-20
Occupancy %
$ per sq ft per month %
Single-user Factory
Multiple-user Factory
Business Park
URA Median Rent of Private Multiple-User
Factory Space (LHS)
% y-o-y change (RHS)
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Independent Market Study
by DTZ Debenham Tie Leung (SEA) Pte Ltd
25,000
20,000
15,000
10,000
5,000
0
’000 sq ft (NLA)
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Annual Supply (LHS) (sq m)
Annual Demand (LHS) (sq m)
Occupancy (RHS)
Average Annual Supply between 2002 and 2011: 8.3 million sq ft
Average Annual Demand between 2002 and 2011: 7.8 million sq ft
93
92
91
90
89
88
87
86
85
%
Source: URA, DTZ Consulting, February 2012