As the industrial and logistics real estate industries in Southeast Asia are expanding, looking at the price of warehouse for lease in Southeast Asia before making a decision is necessary to optimize performance.
Price of warehouse for lease in Southeast Asia is expected to increase in 2022
The Asean logistics sector will continue to grow in 2021 as local demand rises and global commerce recovers.
ASEAN has a population of 662 million people, with an average age of 30.2 and a 1% annual growth rate. After the epidemic, ASEAN is on track to become the world’s fourth largest industry by 2030, trailing only the United States, China, and the European Union.
Thus, as the epidemic drives the move to omnichannel shopping, e-commerce will continue to increase logistics leasing demand in 2022. Also, Vietnam cold storage for rent, food processing centers, and dark kitchens will continue to be in high demand. As a result, the price of warehouse for lease in Southeast Asia will fluctuate with the rising trend.
Furthermore, several free trade agreements have been approved by ASEAN (FTAs). ASEAN has signed a series of free trade agreements with other Asian countries, which are currently drastically changing the global sourcing and manufacturing scene. This opens new opportunities for investors to enter the region more easily.
The country’s economic boom, along with an increase in current retail trends like e-commerce and waves of foreign investment in Southeast Asia’s assembly facilities, will increase demand for high-quality industrial property.
The rapidly expanding warehouse leasing sector in Southeast Asia will face several external and internal constraints. In addition to the elements to consider when leasing a warehouse in Southeast Asia, it is important to analyze current market concerns for future development.
The biggest problem in ASEAN that makes the price of warehouses for lease in Southeast Asia lower than in other regions is human resources. There is currently no proper logistics training program in place to produce a high-quality workforce. As a result of globalization or the development of warehouse leasing in Southeast Asia own joint ventures, logistics firms will suffer a shortage of trained human resources.
Moreover, the application of modern technology among Southeast Asian countries has not been widespread. That limits the competitive advantages of the region when compared to other developed areas.
Average price of warehouse for rent in Southeast Asia
Factory rents in Southeast Asia are among the cheapest in the world when considering future growth potential. Rental rates vary across nations.
Singapore, the most developed country in the area, has the highest warehouse rental price. The warehouse leasing price in Singapore ranges from $1.80 to $3.80 per sq ft. Whereas, other nations have relatively the price for warehouses for lease in Southeast Asia, at $3.5-$6 per cubic meter.
Best warehouse for rent in Vietnam from Savills
Total area: 110,000 m²
Vacant area: 5,888 m²
- Location: convenient access to transportation systems
- Ideal for enterprises specializing in IT, mechanical products, consumer goods, construction materials, food processing, chemicals, and pharmaceuticals.
Total area: 248 m²
Vacant area: 152 m²
- Skilled and abundant workforce
- Well-designed which optimizes efficiency in both design and storage processes.
- LEED Gold Certification.
- Modern facilities
Total area: 46,000 m²
Vacant area: TBC m²
- A sizable and competent workforce.
- The country’s most important economic hub
- Suitable for last-mile deliveries, 3PLs, retail, and e-commerce
- Connected to Vanh Dai 3 and just five minutes from Binh Tan District.
Due to increased demand and the drying up of land banks in industrial zones, prices of warehouses for lease in Southeast Asia have skyrocketed. Everything Savills Vietnam undertakes on behalf of developers, investors, landowners, corporate occupiers, logistics businesses, and public sector organizations is supported by the Industrial Savills research team’s comprehensive experience and up-to-date insight. In any situation, we appreciate good customer communication and timely delivery. So call Savills Industrial right now to discuss your business development plans in further depth.