Warehouse construction to surge again, but no oversupply fears

The development of new warehouses is expected to rebound after last year’s slump, as interest rates and costs steady, tenant pre-commitments firm up and key precincts become undersupplied, according to JLL.

The total supply of new warehouse space fell by almost 1 million square metres last year to 1.94 million sq m as rising construction and debt costs curtailed development, JLL said.