CBRE’s first global analysis of both the occupational and investor aspects of the industrial logistics sector, shows that Tokyo has emerged as the most expensive location in the world for distribution/logistics centres, followed by London and Sao Paulo in Brazil.
Richard Holberton, Director of EMEA Research, CBRE, said: "Once the path to recovery becomes more robust across EMEA, demand for prime industrial and logistics properties will increase throughout Europe. Overall rents across the region are expected to fall by -2.2% in 2010, albeit easing to 0.6% in 2011. In line with the anticipated constraint on prime flexible accommodation for modern industrial and logistics companies in the medium term, rents could increase up by 2% moving into 2012."
CBRE’s Global Chief Economist Raymond Torto said: "The contraction in demand for industrial and logistics properties in 2008 and 2009 led to a more than 10% decline in our Global Rent Index, bringing rents back to 2003-2005 levels. The US and EMEA had the most significant reduction in rents during the period, with declines of 14% and 12%, respectively, while the Pacific Region and Asia weathered the storm better with rental declines of 5% in both regions."
CBRE’s analysis covers 55 of the leading industrial and logistics markets across the world. It shows that, as of 2Q 2010, Tokyo was the most expensive industrial market with an average rental of US $22/sq ft, followed by London (US $19.51/sq ft), Sao Paulo (US $13.01/sq ft) and Singapore (US $11.37/sq ft).
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