Warehouse space supply up 24% in Q1
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The total supply of warehouse space for rent was 3,111,372 square metres in the first quarter, an increase of 3.60 per cent from the final quarter of 2012 and up 23.72 per cent year on year, as an additional 108,188sqm entered the market, according to Kni
Average occupancy rates dropped by 2.6 per cent from the fourth quarter of last year to 90.01 per cent in the first quarter of 2013 as new developments were completed, the research found.
Up to 43 per cent of all warehouses for rent are in Samut Prakan province, which enjoys close proximity to Bangkok, several major industrial estates and excellent transport connections, the consultancy said.
However, as developers plan new warehouse projects along the Eastern Seaboard and increasingly in the Northeast to cater to the population’s growing purchasing power, the distribution across the provinces is expected to change.
Although the quantity of leased warehouse space increased again in the first quarter of 2013, occupancy rates have fallen steadily over the past year because of the expansion of existing projects and establishment of new ones, the research found.
Meanwhile, UTi Worldwide Co, a leading provider of integrated supply-chain solutions, recently signed an agreement with Hemaraj Land and Development to lease a third warehouse in Hemaraj Logistics Park 2, with total area of 3,370sqm.
At present, UTi leases and operates warehouses in Hemaraj Logistics Parks 2 with a total area of 13,638sqm.
