Take-Up Of JTC Ready-Built Space Rises To 2-Year High

Source : The Straits Times, Nov 2, 2007

Strong demand for factory, business park premises in third quarter.

THE take-up among businesses for JTC Corp's ready-built facilities is at a two-year high.

Net allocation of such industrial space stood at 75,100 sq m in the July to September quarter - 29 per cent more than in the previous quarter and the highest since the third quarter of 2005.

This increase in take-up from the industrial landlord was due mainly from good demand for factory space and business park space.

Gross allocation of ready-built space in JTC's business parks almost doubled to 5,300 sq m in the third quarter.

Occupancy of JTC's business parks was 94 per cent as at the end of September.

The net take-up of JTC's prepared industrial land in the JTC's logistics parks, business parks and on Jurong Island stood at 55.9ha in the quarter.

This is 13 per cent down from the previous quarter but still more than twice the figure achieved in the third quarter of last year.

Such land - which has road access, drains, water and sewer mains to allow companies to develop their own facilities - are provided both inside and outside specialised parks such as Changi Business Park, International Business Park in Jurong East and Biopolis in one-north in Buona Vista.

JTC said demand came mostly from companies dealing in logistics, precision engineering and services.

Local firms continued to chase prepared industrial land outside specialised parks, which formed 78 per cent of gross demand. However, the proportion of such land taken up by foreign firms has risen by 11 percentage points to 22 per cent over the previous quarter.

Meanwhile, consultants expect more companies to consider moving operations from the Central Business District (CBD) as office rentals soar.

Rents grew 14.8 per cent in the third quarter and have shot up more than 40 per cent since the end of last year.

The director of research and consultancy at Colliers International, Ms Tay Huey Ying said: 'We are seeing firms that are more prepared to consider alternative business premises other than office space within the CBD.'

Companies providing management services or those in the insurance, design or aviation sectors, for example, have either made the move out or are preparing to do so, move to alternative locations in business or industrial parks or temporary office sites offered by the Government,she said.

Ms Tay expects the trend to continue until more prime office space is added from 2010, mainly at Marina Bay.

Meanwhile, JTC said that the first phase of its research and development complex, Fusionopolis in one-north Buona Vista, is expected to be completed by the end of this year. It will offer about 120,730 sq m of business park space.