London Heathrow still the most expensive logistics zone
London Heathrow is the most expensive logistics location in the world, according to a new report by DTZ.
The property solutions firm’s Global Occupancy Costs Logistics 2013 report reveals that renting a logistics facility around the London airport will cost US$313 per square metre per annum.
Other notably expensive logistics zones are Hong Kong, Zurich, Singapore and Oslo.
On the other range of the scale, the global top five least expensive markets are dominated by the Chinese Tier II cities of Wuhan, Shenyang and Chengdu, with Atlanta and Marseille completing the list.
“Looking forward, global logistics occupancy costs are projected to increase by a modest rate of 1.6% to the end of 2017, below the global inflation rate. This is driven by increased future space supply across markets, which will limit potential rental growth. There are, as expected, significant differences between markets. Whilst occupiers in Hong Kong and Milan are expected to benefit from falling costs, we anticipate rising costs in Dublin at 5.4% and Melbourne at 3.4%, supported by consistent tenant demand,” said Karine Woodford, head of Occupier Research and co-author of the report.
While Rob Hall, Head of CEMEA Logistics, added: “In respect of Europe, the UK continues to be one of the most expensive locations for occupiers, with six of the markets covered above the European average. Four Nordic markets are also in the top ten most expensive locations.
“Marseille, Antwerp, Brussels, Lyon and Budapest will continue to offer the lowest occupancy costs in Europe to 2017. However, as the projected cost growth rate will be subdued in Antwerp going forward, we expect it to replace Marseille as the most affordable market.”
For more information about the report, visit: www.dtz.com