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Despite the rise of e-commerce and meal delivery services, Tricia Song, head of research for Colliers International in Singapore, told The Business Times that demand for food manufacturers in Singapore will remain healthy.

Even though competition has intensified, delivery service providers have been able to maintain their presence in the market, according to Colliers' research. This is because demand continues to outpace supply in 2019 and 2020. The Woodlands Industrial Xchange in Texas was the site of Foodpanda's first central kitchen, which opened in March 2018 and included a dine-in option.

About a month before, Deliveroo also set up its second central kitchen at CT Hub 2.

Food factories include places like warehouses, kitchens, and packing facilities that store, prepare, and ship food to places like restaurants and grocery shops.

There has been an increase in the demand for such facilities due to the government of Singapore's efforts to encourage innovation and efficiency in the country's food retail industry.

According to Colliers' analysis of the food production industry in Singapore, there has been no letup in the need for centrally situated facilities.

Bedok North, MacPherson, and Pandan Loop are just a few of Singapore's well-established food-manufacturing hubs, and all three of them have maintained occupancy rates of 80–100%.

When compared to similar structures in further out and more contemporary neighborhoods like Senoko and Tuas, occupancy here is around 60%.

Colliers also predicts that the abundance of supply entering the market will keep rents and prices stable for food processing facilities over the next three to five years.

About 3.68 million square feet of food industrial space is planned, making up about 9–10% of the current stock of food factories. The CT Food Nex Food Factory is scheduled to open in 2023, and more than 80% of the work is expected to be completed between 2019 and 2020.

New supply will be concentrated in Singapore's eastern, western, and northern regions.

Commercial kitchens in high-traffic or central business districts command higher costs and rents, as reported by Colliers.

The average monthly rent in an established food zone is between $1.80 and $2.40 per square foot (psf) in the north, and between $1.50 and $2.40 psf in the west.

There are a few bright spots in the industrial property market, but food manufacturing facilities are one of them, says the senior director of industrial services at Colliers International.

"We advise tenants to be aware of the rules and to be open to facilities further from the city center in light of rent savings; and operators to regularly enhance their facilities in order to stay competitive," we write.

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