Global demand for e-commerce fulfillment centers and distribution centers fueled a 2.8% year-over-year increase in prime logistics rents globally, according to CBRE's Global Prime Logistics Rents report.
Conversely, urban areas with larger land supplies are showing the lowest rents, including U.S. hubs like Chicago, Dallas-Ft. Worth and Atlanta.
This growth is "prompting traditional retailers, e-commerce companies and third-party logistics firms to seek out advanced ‘prime’ logistics warehouses to modernize their supply chains and thus facilitate the rapid delivery of goods," says Richard Barkham, CBRE’s global chief economist.
Shenzhen, with a population of more than 11 million people and 8,000 tech companies is growing with R&D support. Local companies and the government invested more than $3 billion, almost 6% of the city GDP in R&D.
The city enjoys well-established air, land and water transportation network. Shenzhen Bao'an International Airport offers regular domestic and international flights to connect Shenzhen with over 103 major cities in the world. Shenzhen Station is the destination of railway routes from Beijing, Shanghai and major cities in China. Shenzhen Port, the second-largest port in China in terms of container throughput, provides excellent cargo services to the world.
This city's cost per square foot is $8.27.
Approximately $1.9 billion of industrial property transactions were recorded over the last 12 months in Sydney. Industrial yields for prime and secondary assets remain steady over the first quarter of 2016 and industrial land values grew over the last 12 months, with signs of further growth in Western Sydney, according to Savills. The investment market remains extremely strong as the weight of capital from local and overseas investors creates a seller’s market, the consulting firm said.
This city's rent per square foot is $8.34.
Recent efforts in the U.K. to rebalance the economy have included the 'Northern Powerhouse' investment to boost Manchester, Liverpool, Leeds, Sheffield and Newcastle.
This region's rent goes for $8.45 per square foot.
Confidence in the UK's logistics industry is at a four-year low - reflecting wider concerns about the UK economy and the pressure being placed on the sector by retailers and manufacturers, according to a new Barclay June study.
This region charges $8.75 per square foot.
The areas along both banks of Huangpu River will become one of the core functional zones for Shanghai’s development, according to HKTDC Research. This development will successively drive business and commercial development along the banks of Huangpu River, namely Lujiazui, Bund Source, Yangpu riverside, North Bund in Hongkou, Luwan riverside and Xuhui riverside, according to the firm. And eventually, it will become a new area for the development of Shanghai’s service sector endowed with a rich cultural background, distinctive local characteristics, a convergence of service economies, booming riverside tourism, sound infrastructure and a riverside landscape with greenery.
This city's rate per square foot is $9.44.
Stockholm has a large workforce in logistics, transport and supply chain that number 50,000. The city has 10 logistics clusters and has 936 hectares planned for logistic operations. One of Europe’s largest infrastructure projects, The Stockholm bypass, is currently under development.
This city's rate per square foot is $9.90.
Singapore is in the midst of transforming its logistics industry, according to the Motley Fool. Singapore’s economy grew by just 1.8% in the first-quarter of 2016, the firm points out and is therefore looking into a number of improvements including expanding the Changi Airport. The government created TradeNet and TradeXchange for the logistics industry to collaborate to form a supply chain.
The city's rate per square foot is $10.92.
UK trends in supply chains are being amplified in London, according to Savills. The structural change in retail will require more warehouse space to service consumers and businesses. Due to the fact that land supply is constrained, rents are increasing and are forecast to rise further.
This city's rate per square foot is $16.36.
The rate per square foot in this city is $16.74.
Due to the unique high-rise nature of this market as prime warehouses are multi-story properties with ramp-access to each individual floor making the gross to net efficiency ratio much lower than the traditional single-story facility. As a result Hong Kong is 73% high than the second-most expensive location, Tokyo.
This city's rate tops the list at $28.94 per square foot.
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