The rents of logistics hubs are rising globally. According to real estate consultant CBRE's Global Prima Logistics Rents report, prices of logistics sites rose 2.8 per cent in 2015 compared to a year earlier. This is said to be mainly due to growing demand for fulfilment and distribution locations for e-commerce.
The report shows in which regions rents were highest in the fourth quarter of 2015. The Netherlands ranks 44th in this list with the Tilburg/Eindhoven/Venlo region. Rents in this region are $5.57 (€4.96) per square feet (0.093 m2). We list the ten most expensive logistics hubs.
10. Shenzhen, China ($8.27 per square feet)
This metropolis in China is considered one of the fastest-growing cities on earth. Shenzhen enjoys good transport links via air, land and water. From Shenzhen Bao'an International Airport, flights are flown to more than 100 cities. Shenzhen boasts rail connections to Beijing, Shanghai and other major Chinese cities. In addition, Shenzhen's port is the second largest in China.
9. Sydney, Australia ($8.34 per square feet)
According to the report, Sydney remains an attractive location for local and international investors. Over the past 12 months, $1.9 billion worth of industrial property transactions were done.
8. Leeds/Sheffield, UK ($8.45 per square feet)
The UK has invested heavily in its economy over the past year in Manchester, Liverpool, Newcastle, Leeds and Sheffield. This is reflected in rental prices in the region.
7. Manchester/Liverpool, UK ($8.75 per square feet)
See above.
6. Shanghai, China ($9.44 per square feet)
Areas along both banks of the Huangpu Jiang River, a 97-kilometre-long river that flows through Shanghai's city centre, are booming. Consequently, prices of logistics sites in this region are rising.
5. Stockholm, Sweden ($9.90 per square feet)
Stockholm has over 50,000 workers in logistics, transport and the supply chain. The city has nine logistics clusters. Another 936 hectares are planned for future logistics operations. One of Europe's largest infrastructure projects is currently under construction: Förbifart Stockholm (Stockholm Bypass).
4. Singapore, Singapore ($10.91 per square feet)
Singapore's economy grew by only 1.8 per cent in the first quarter of 2016. The government is therefore looking to improve infrastructure in the region, starting with the expansion of Changi airport.
3. London, UK (16.36 per square feet)
With the changing retail landscape, demand for new logistics space is also growing in London. However, there is limited space available in the region, which is why rental prices in London are predicted to continue rising sharply in the coming period.
2. Tokyo ($16.74 per square feet)
A lot of new supply is expected to be added in Tokyo this year. This is necessary as demand for state-of-the-art logistics facilities here continues to grow.
1. Hong Kong, Hong Kong, China ($28.94 per square feet)
Hong Kong stands alone in the list. Rental prices are close to $29 per square feet in this region. The difference in price lies mainly in the fact that in Hong Kong, there is a lot of high-rise construction. In Asian cities, multi-storey logistics buildings with ramps are commonplace. Even in cities like London, where land prices are high and available space is scarce, this type of building can offer opportunities.
Editorial LogistiekProfs
