Despite a decline in industrial production, a lack of inventory has enabled global growth in industrial rents, according to CBRE’s Global Industrial MarketView report.
Leasing from logistics operators and retail distributors fueled the increase, the report said.
CBRE’s Global Industrial Rent Index rose by 0.5% quarter-over-quarter in the third quarter of 2011, and by 1.7% year-over-year, driven largely by activity in Asia. Rents have stabilized in the U.S., Europe and Africa.
“Global industrial rents now reflect 2006 levels,” said CBRE’s chief economist, Raymond Torto.
Rents in Asia have risen above pre-recession levels. At an average price of $21.84 per square foot for prime industrial space, Tokyo boasts the highest industrial rents per square foot in the world, followed by London, Singapore and Sao Paulo.
The market with the highest growth was the Vancouver, Canada metro area at 7.5 percent in the third quarter. This growth is mostly attributed to currency changes.
Numbers in U.S. industrial markets were surprisingly positive as well, due mostly to diminishing supply for large, prime industrial space, the report showed.
“The U.S. was home to many of the largest industrial deals completed during the third quarter, as occupiers took advantage of leasing class A space in an opportune stage in the rental cycle,” said CBRE’s managing director of industrial services for the Americas, Ed Schreyer. “Export demand also played a key role … [and] the demand for retail goods led by the low value of the dollar continued over the period.” — Guelda Voien