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Global prime logistics rents higher in 2017

by Andrea Waitrovich

Logistics rents in 70 major global markets rose by an average of 2.2 percent annually during the first quarter of 2017, according to CBRE’s second-annual Global Industrial & Logistics Prime Rents Report. CBRE defines prime logistics rents as the highest achievable rent for industrial distribution space of the highest quality and specification, and in the best location within each industrial market.

U.S. coastal logistics hubs continue to experience exceptional year-over-year prime rent growth. Five of the top 10 largest rent increases in prime markets were in the U.S., including Seattle up 19.6 percent, Pennsylvania’s Lehigh Valley up 10.0 percent, and Oakland up 9.3 percent. Oakland and Los Angeles/Orange County were among the top 10 for most expensive markets, at $8.73 and $8.52 per square foot, respectively.

Asian markets remained the world’s most expensive as demand for top-quality warehouses and distribution centers continued to outpace supply.Hong Kong was with the most expensive market at $32.40 per square foot, followed by Tokyo at $18.22, and then London at $17.86.

On a regional basis, rent growth in the Americas was up the most at 3.8 percent, with Asia Pacific next at 1.4 percent, and Europe, Middle East and Africa (EMEA) up 1.2 percent.

 

Percentage Change in prime industrial & logistics rents

Year-over-year growth from Q1 2016 to Q2 2017

City Country Region Prime rent growth
Seattle United States Americas 16.9%
Lehigh Valley, Pa. United States Americas 10.0%
Leeds/Sheffield United Kingdom EMEA 9.5%
Oakland United States Americas 9.4%
Manchester/Liverpool United Kingdom EMEA 9.3%
L.A./Orange County United States Americas 9.2%
Atlanta United States Americas 9.2%
Hangzhou China APAC 7.4%
Ningbo China APAC 7.2%

 

 

 

To read the full report, click here.

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