Datacenter yields in Singapore soften as investor appetite grows

More yield benchmarks are expected as stabilised data centers hit the market.

Singapore, along with Tokyo, Seoul, and Mainland China, is amongst the tier I Asian markets with relatively softer data center yields than those for traditional real estate sectors., CBRE reported.

In Asia Pacific, CBRE said that despite the rising cost of debt, data center yields have remained relatively stable over the past 12 to 24 months.

“Yield stability continues to drive institutional investment into the sector, with investors drawn to steady cash flows and attractive risk-adjusted yields. Data centers, particularly hyperscale centers, offer some of the most attractive income streams in the current landscape, with the lengthy lease tenures and strong credit covenants seen as especially attractive by investors,” CBRE said.

CBRE expects further transactional evidence on yields for data centers to materialise over the next six to 12 months, as assets stabilise and more properties are brought to the market for sale.

“This will help boost investment activity as establishing market exit values provides investors with further rationale to develop and invest in the sector within Asia Pacific,” CBRE added.

Follow the link for more news on

CBRE

Chart of the Day

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia