London Heathrow has retained its mantle as the world’s most expensive industrial property location, but the significant growth is in Asia, according to a new report from Cushman & Wakefield.
Cushman & Wakefield’s Industrial space across the world 2011 report shows London’s Heathrow maintained its number one position for the 10th year running, with occupancy costs of €235 per m2 pa (£202).
Tokyo remained in second place at €183 per m2 pa (£158), while Geneva, at €164 per m2 pa (£141), moved up to third place from fourth last year.
But six out of the top 10 fastest-growing industrial locations in the world are in Asia.
Industrial property rents in Asia jumped by over 5% last year in contrast to the rest of the world, where the occupational market deteriorated in most locations.
In the US and Europe, Middle East and Africa, industrial rents fell by 1.2%.
Karen Thomas, partner in the national logistics and industrial team at Cushman & Wakefield, said: “The continuing success of Heathrow’s industrial market is due mainly to its strategic location and its role as an international gateway for passengers and freight.
“With the development pipeline effectively turned off, the supply of quality premises will continue to fall in 2011 as take-up eats into existing stock.”
nick.whitten@estatesgazette.com
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