Warehouse rents rose faster than business parks in Q3 2026

Singapore’s warehouse rental index rose 1.1 points between Q2 and Q3 2026, while the business-park index barely moved, adding 0.1 point. Calculated from the official JTC series published through SingStat, those changes work out to approximately 1.02% and 0.08%, respectively.

For an occupier approaching a lease renewal, that contrast gives a useful starting question: how does the landlord’s proposal compare with a genuinely workable alternative? It does not supply the answer in dollars. This is an analysis of the completed Q3 record, released on 22 October 2026, rather than a new-release announcement.

What changed between Q2 and Q3?

The comparison below uses only the Warehouse and Business Park series in SingStat’s Industrial Rental Index. Both increased over the quarter, but warehouse rental movement was appreciably stronger.

Source values are from the official table; differences and percentage changes are our calculations using the displayed index values. The index base is 4th Quarter 2012 = 100.

The distinction between the last two columns matters. An index-point change is simple subtraction. For Warehouse, that is 109.1 minus 108.0, giving 1.1 points. To calculate percentage growth, divide that increase by the starting value: 1.1 ÷ 108.0 × 100 = approximately 1.02%.

Applying the same method to Business Park gives approximately 0.08%. The difference between the two quarterly growth rates is therefore about 0.94 percentage point. That is the useful comparison of momentum: warehouse rents moved faster during this particular quarter.

At one decimal place, the calculated changes round to 1.0% for Warehouse and 0.1% for Business Park. The extra decimal places here explain the arithmetic; they should not be mistaken for greater precision in a particular lease negotiation.

Why 123.8 does not mean a higher monthly rent

The Business Park index ended Q3 at 123.8, above Warehouse at 109.1. These are index levels, not monthly rental quotations. They measure movement relative to the series’ base period, rather than stating what a tenant pays per square foot or square metre. A higher index level is not a ranking of which property type costs more to occupy.

The table’s methodology states that, from Q4 2014, the rental index is computed from island-wide transactions covering multiple-user factories, single-user factories, business parks and warehouses. Both quarters used here fall within that stated coverage period. This article deliberately compares only Warehouse and Business Park.

That scope makes the figures useful as broad market context. It also sets the boundary: an island-wide index is not a quotation for a building, a district rental estimate or the percentage increase every tenant should expect.

For a renewal discussion, use the quarterly movement to frame a question, not dictate a counter-offer. Ask what premises and lease terms support the proposed rent. If your existing lease began years earlier, compare the relevant period rather than judging the entire renewal uplift against a single quarter.

Check whether the alternative can do the job

Before pricing a move, establish whether the candidate premises can accommodate the business. Treat this as a screening exercise: confirm the proposed activity is acceptable, then check usable operational area, loading access, ceiling height, floor loading and electrical capacity. Do not assume that a business-park unit is a substitute for warehouse space simply because its index rose more slowly.

These are concrete search criteria, not just technical footnotes. JTC’s space-search tool includes filters for industry type, minimum ceiling height, electrical loading and minimum floor load, alongside floor size and total monthly rent.

Use those criteria to build a short list before comparing prices. Ask how goods would enter and leave, where stock would sit, and whether equipment could be installed and operated. Seek written confirmation of any approval or technical requirement on which the move depends.

The decision should therefore have two stages: can the premises work, and what would they cost? Keeping that order prevents a low quotation from becoming the anchor for an unsuitable move.

Compare the whole lease, over the same period

For the financial comparison, put the renewal proposal and each viable alternative on the same time horizon. Ask for the rent schedule, service charges, incentives and lease length in writing. Record what is included rather than assuming two quoted rates cover the same things.

Then separate recurring occupation costs from one-off relocation costs. Request estimates for fit-out, moving equipment and stock, reinstating the old premises, any overlapping occupation and business downtime. These are items to investigate for the actual premises, not costs that can be read from the rental index.

A useful planning calculation is: relocation’s additional one-off cost divided by its monthly recurring saving. The result is the number of months needed to recover that cost, assuming the saving stays constant. If the alternative produces no recurring saving, the case for moving must rest on another benefit, such as better operational fit—not a claimed rental saving.

Test the comparison again with a delayed move or a higher fit-out estimate. Also make any incentives and stepped rents explicit, so an attractive opening rate does not stand in for the full lease commitment.

Q3’s official figures establish a clear difference in rental momentum: Warehouse rose faster than Business Park. The next meaningful number for an occupier is more specific: the cost of renewing against the full cost of moving into premises that can actually support the business.