Tokyo has become the most expensive industrial real estate market in the world as fierce competition for modern facilities from fast-growing e-retailers and expanding 3PLs drive demand, according to new research from CBRE.
The firm’s quarterly survey, which tracks the top 10 prime global logistics markets, names Tokyo as the most expensive market, followed by London and Singapore.
Prime rents in most European markets, including London, Paris, Stockholm, Moscow and Helsinki, held steady despite a challenging economic environment. However, demand for highly specified, well-situated warehouses remained robust. Occupiers looking to expand have limited options that met their specifications, prompting many to remain in their existing premises.
Rents in eight of the top 10 most expensive markets were stable during Q2 2013, with rental values growing in Tokyo and Hong Kong. Due to demand from e-retailers and expanding 3PLs, Tokyo’s rents expanded 2.2% during the quarter. Hong Kong’s rents grew by 2.6% for the quarter, due to exceptionally tight supply of available space. Third-ranked Singapore also faced a shortage of good-quality stock amid strong demand.
