July 13, 2018
Prime logistics rents increased globally in the year ending March 31, according to a new report from Los Angeles-based CBRE. Growth accelerated in many markets, due to strengthening economies around the world and greater demand for distribution of goods, bought both online and in stores.
Prime logistics rents, which CBRE calculates as the highest achievable lease rates for top-quality warehouse and distribution-center space, increased by 3.2% across the globe in this year’s first quarter from a year earlier, according to CBRE. That exceeds the previous 12-month period’s 2.2% global increase.
CBRE’s David Egan says, “This is a positive indicator that we’re still seeing global growth roughly six years after the U.S. market for Industrial & Logistics real estate began its recovery from the recession. This underscores the theory that e-commerce-driven demand for logistics facilities has created a fundamental shift in this market, establishing new baselines for occupancy, rents and other measures.”
Of the 10 global logistics hubs registering the largest gains in prime logistics rents, four were in the Americas. The biggest gainer globally was Vancouver, which posted a 29.1% increase due to its lack of land available for industrial development amid its growth as Canada’s largest port. U.S. cities ranked in the top 10 were Oakland (14% increase), Seattle (13.4% gain) and New Jersey (up 9.5%).
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