The most expensive markets are Hong Kong, Tokyo, and London. properties qatar
According to CBRE Group Inc.'s inaugural Global Prime Logistics Rents survey, global demand for e-commerce fulfillment centers and distribution centers sparked a 2.8 percent year-over-year rise in prime logistics rents, with double-digit percentage growth in U.S. coastal markets leading the way. Six of the top ten markets in the world with the fastest-growing prime logistics rents were in the United States, with Oakland, Calif., leading the way with a nearly 30 percent increase.
While American seaports and inland ports aren't among the most expensive in the world for logistics rentals, they did see the most growth in 2015, thanks to an increase in the flow of products into and through the area from online purchases. In addition to Oakland, which ranks first, New Jersey is second, the Inland Empire is third, Los Angeles-Orange County is seventh, Dallas-Fort Worth is eighth, and Atlanta is ninth.
Two more cities in the Americas are in the top ten for rent increases: Santiago, Chile, and Ciudad Juárez, Mexico.
The dramatic increase in prime rents in the Americas was largely due to massive growth in coastal markets in the United States, where relentless occupier demand pushed up pricing. Despite the high cost, the need for quality premises is the most important factor for inner-bay logistics users in Oakland. In some markets, such as the Inland Empire, new construction is commanding premium rates. In Latin America, Santiago and Ciudad Juarez saw 10.9 percent and 10.2 percent rises in prime rent, respectively. Prime rents in So Paulo were down 10.5 percent year over year.
A supply chain arms race among retailers, shippers, and suppliers seeking to accommodate the continued growth of e-commerce is fueling much of the upward pressure on rents in logistics markets in the Americas and around the world. Modern distribution and fulfillment centers with high loading dock ratios and transparent ceiling heights of at least 26 feet to accommodate high-tech stacking racks and automated storage and retrieval systems are in high demand. Many of these facilities are being constructed in densely populated areas with high land costs.
"Global consumer demand is high, and an ever-increasing share of retail sales is taking place online," CBRE's global chief economist, Richard Barkham, said. "As a result, traditional retailers, e-commerce companies, and third-party logistics firms are looking for advanced 'prime' logistics warehouses to modernize their supply chains and make goods distribution more effective."
Last year, growth in prime logistics rents in the Americas (up 5.6%) outpaced that in Asia (up 2.5%) and Europe, the Middle East, and Africa (up 2.5%). (up 0.8 percent). The highest possible rents for a logistics facility of the highest standard and specification are known as prime rents.
"E-commerce demand is strong in the Americas, and rents are rising from a low base in the United States due to the abundance of developable land," said David Egan, CBRE's head of industrial and logistics research in the Americas. "Developers are constructing and delivering more logistics buildings, but demand is outpacing supply. As a result, industrial tenants should expect rents to rise for a while longer."
Even, American logistics markets have a long way to go before they can be considered among the most expensive in the world. This distinction is given to markets that are heavily populated and have higher land costs. Hong Kong, with an annual prime rent of US$28.94 per sq. ft., is the most expensive market, followed by Tokyo ($16.74), London ($16.36), Singapore ($10.91), and Stockholm ($9.90). Los Angeles-Orange County, which ranked 12th globally at US$8.04 per sq. ft. per year, was the most expensive market in the Americas.
CBRE monitors prime rents in 68 global logistics hubs. Rents increased in 59% (40 markets) of monitored markets year over year, remained unchanged in 25% (17 markets), and decreased in just 16% (11 markets). CBRE restricted its reach to buildings larger than 100,000 sq. ft. (10,000 sq. m.), with ceiling heights greater than 26 to 36 feet (eight to ten meters), and a loading-dock ratio of one dock to 10,000 sq. ft., among other requirements, in order to concentrate this report exclusively on prime facilities.