Quite a few industrial landlords had no transactions this quarter, highlighting that the market continues to face hardship. Notwithstanding the hard times, confidence in a better outlook still persists. Landlords generally believe that pent-up demand in the industrial sector is huge. This also explains why some existing and new industrial estates are still focusing on the land development process, despite the limited availability of new land for expansion.
Landlords should anticipate increased interest from the technology-based and logistics sectors. Companies needing data centres are still eyeing industrial locations. Last year, Indonesia had the biggest e-commerce market in Southeast Asia, with a Gross Merchandise Value (GMV) of USD32 billion. This will open up more opportunities in the logistics sector, either for storage or distribution centres.
