Global prime warehousing costs (rent, taxes and service charges) increased by 1.1 percent in the six months to March 2025, taking the increase in overall warehousing costs to occupiers to 3.6 percent in a 12-month period, said Savills. However, the international real estate adviser reported that this is a notable decrease from the 7.3 percent growth observed in the previous 12 months — warehouse headline rents have stabilized or declined in some markets as some occupiers have delayed leasing decisions in the context of geopolitical uncertainty. Rising occupier operating expenses have made up the bulk of cost increases in many markets, according to Savills, with a shift toward the need for smart, tech-enabled facilities and greater automation.
London retains its position at the top of Savills’ global warehousing costs index for the fifth consecutive year, recording total annual occupancy costs of nearly $49 per square foot. According to Savills, this has been driven by ong
