Warehouse vacancy up to 3.3% in 2022: Colliers

This is due to the completion of the logistics centre in Tuen Men

Vacancy in the warehouse sector posted a slight uptick to 3.3% at year-end primarily because of the completion of the new ramp access logistics centre in Tuen Men, with the general industrial rent increasing by 4%.

In a report, Colliers said warehouse rent in the second half of 2022 was up by 2%, with food and beverage, self-storage operators and retailers mainly contributing to the industrial leasing activities during the period. 

The increase in rent was a “less significant margin” compared to the year's first half. The third-party logistics operators, which is the most important source of industrial liaising demand, slowed down their pace for leasing, it said.

READ MORE: Warehouse vacancy inches up to 2.7% in Q3

For 2023, Bill Chan, Head of Industrial Services at Colliers Hong Kong, said the general industrial demand is seen to “remain constant” and push the rent by 2%.

“Despite a major new warehouse supply of 3.8 million sq. ft. GFA coming to the market in 2023, [i]t is expected to be a temporary shortage of industrial supply in Hong Kong’s northern districts in the coming three years, before the new supply generated from industrial land sales related to the Northern Metropolis development become available in 2027,” Chan said. 

“We foresee that warehouse and general industrial spaces with desirable specifications like high floor loading and height are still sought after by occupiers,” he added.