Global Industrial Market Report - Industrial Space Across The World 2011

Report Summary:

The global recession may have ended but its impact continued to be felt in the property sector across the world in 2010, with rents declining by just over 1%. Most regions suffered a fall, with only Asia recording positive growth, with rents moving up by 5% on the back of encouraging economic growth and increasing occupier demand.

London Heathrow remained the most expensive industrial location in the world, with Tokyo maintaining second place and Geneva moving up to third. Singapore moved back up into the top five after rental values increased over the year by almost 15%. 2010 saw the Singapore market characterised by an improvement in manufacturing output and a resultant rise in occupier demand. Within Asia, rental growth was evident across the whole region with six of the top 10 best performing locations on a global basis from within Asia. The highest rental growth was seen in Greater Jakarta in Indonesia where a solid economic recovery and a stable political environment generated occupier demand and, as a result, rents rose by almost 22% over the year.

EMEA rents fell by almost 2.5%, although there was a polarisation in performance across the region. Rental values in the Middle East and Africa declined by over 7%, as occupier demand levels failed to recover and supply levels rose. A further deterioration in rents was also seen within Central and Eastern Europe (CEE), where weak economic performance in some markets resulted in rents falling by 5.5% as occupier demand levels remained low over the year. In contrast, some CEE markets saw better demand as did parts of Western Europe, albeit as these western markets dipped by 1% overall. Supply levels remained tight in Western Europe and, with the development pipeline slowing, this helped to prevent rental values falling too far over the year.

About the Author:

Cushman & Wakefield's international representation is designed to facilitate the rapid flow of information across borders and is supported by a comprehensive database of market information and regular liaison meetings.
This allows for the exchange of local market knowledge and expertise, and for the co-ordination of strategy for international investment and locational decision-making.

The Global Logistics & Industrial team provides advisory and agency services to occupiers, developers and investors of industrial and distribution premises across the globe. It works with local, national and multi-national industrial clients to create seamless, consistent and tailor made industrial real estate solutions that deliver better business performance through constantly seeking to improve shareholder value and maximise cost saving opportunities.