Industrial rents see continued growth globally: CBRE

TRD New York /
Dec.December 01, 2011 12:23 PM

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

Related Articles

Cheung Chung Kiu is no stranger to big real estate deals (Credit: Wikipedia)

Mysterious billionaire who bought $262M London mansion is obsessed with blockbuster real estate deals

Daniel Daggers is out at Knight Frank (Credit: Getty Images)

One of the UK’s top agents marketed a mansion like a US broker. He was fired

Prologis CEO Hamid Moghadam and 18-51 Flushing Ave. (Credit: Google Maps, iStock)

Frito Lay cashes in chips, sells Queens warehouse to Prologis

Dov Hertz and Prologis CEO Hamid Moghadam with 150 52nd Street in Sunset Park (Credit: Google Maps, Proologis)

Prologis buying Sunset Park property teed up as new City Harvest HQ

CenterPoint CEO Bob Chapman, 101-01 Avenue D (top) and 103-00 Foster Avenue (Credit: Google Maps)

Warehouse frenzy continues as newcomer makes $134M Brooklyn buy

Cheung Chung-kiu and 2-8a Rutland Gate in London (Credit: Wikipedia, iStock)

London megamansion sale bests NYC’s $238M condo record

Boris Johnson (Credit: Getty Images)

London sees flurry of commercial deals after Boris Johnson win

RXR CEO Scott Rechler and an aerial view of the site (Credit: Getty Images, Google Maps)

RXR plans 21-story LIC office building with manufacturing incentives