Keen Competition for Limited Stock of Modern Logistics Facilities, by CBRE
There is keen competition across the world’s most expensive logistics markets for space, according to a new CBRE report titled Global Industrial View (Q1-2013). According to CBRE, First Quarter 2013 rent growth was “quiet,” but that was partially attributed to occupier reluctance and to cost containment — particularly in the form of space consolidation; however, another reason was that large blocks of prime space in the best locations remained scarce and expensive. Occupiers that were looking for additional space, said CBRE, likely found few options that met their desired specifications.
Rents across the majority of the world’s most expensive logistics markets held steady again in Q1 of 2013. Third-party logistics operators and retail companies continued to be primary sources of demand in markets such as Tokyo, where expansionary demand helped improve rents by 5.7 percent quarter-over-quarter.
Pockets of growth were recorded for Hong Kong and for Perth, thanks to exceptionally tight availabilities of prime space. Hong Kong was active mainly due to relocation demand. In Perth, the resource sector drove demand, according to CBRE, where tenants associated with the liquefied natural gas sector searched for high quality, large units of space amid tight supply.
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