Tokyo has been found to be the globe's priciest market when it comes to industrial real estate, CBRE Group research shows.
The Japanese capital was followed by London in the recently revealed list from the commercial real estate specialist, compiled from the organisation's quarterly survey tracking ten markets for global logistics.
The island of Singapore came third in the list, which was released at the end of last month.
In the 'Logistics Prime Rent Ranking' Tokyo came in at USD 20.02 for each square foot per year, London was at USD 19.12 with Singapore at USD 17.13.
For Q2 this year, rental values had gone up for Hong Kong and Tokyo, but in the other eight locations in the list of ten, rents remained stable.
In the Japanese city, a rent expansion of 2.2 per cent for Q2 was put down to e-retailer demand and 3PLs expanding.
When it came to London and the majority of European markets, prime rents remained broadly unchanged even though the economy has been somewhat challenging recently.
CBRE adds that there was still robust demand where highly specified warehouses based in good locations are concerned. Spec-matching choices are limited when occupiers wish to expand, meaning a lot of them are staying put, it says.
"Retailers continue to serve as a significant source for global logistics demand in many markets, including London, Tokyo, Singapore, and Hong Kong," commented CBRE’s Dr Raymond Torto.
"Meanwhile, the growth of e-commerce and growing international demand have benefited cities such as Tokyo and Brisbane."
When it comes to a large number of markets, a shortage in modern top quality stock has played a part in keeping rents up, he added.
Several of the locations have significant pipelines for supply, but this is unlikely to create a surplus because demand is strong, he added.
"This was evidenced by the high level of pre-leasing commitments in Tokyo and Perth," he said.
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