Zagreb, Croatia, August 24, 2008 --(PR.com
)-- Industrial markets around the world are beginning to feel the effects of the global slowdown. That's according to the latest research from Colliers International, who have just released their Midyear 2008 Global Industrial report. The research also found that London's Heathrow submarket is the most expensive warehouse space in the world.
The report found that European warehouse markets continued to show steady growth, albeit down from 2007 levels. Spain, The Netherlands, Austria, Belgium, Sweden, Denmark and the UK are all anticipating higher yields (lower prices) in the coming months. For the rest of the EMEA region, however, solid fundamentals are expected to leave yields steady and in some cases possibly decline. Europe is also home to some of the most expensive warehouse rents in the world with London’s Heathrow submarket holding the title for the most expensive warehouse space in the world at $26.92 per square foot per year (Ł13.50 per square foot per year). Not surprisingly London’s Heathrow submarket registered the most expensive land in the EMEA region at $160.15 per square foot.
As anticipated, U.S. and Canadian warehouse markets registered more sluggish results during the first half of 2008 compared with 2007; however, Canadian markets, and particularly those in western Canada, continued to operate above trend. As the U.S. economy continues to cool leasing activity is expected to show a further decrease as the effects of a depressed housing market filter through the general economy. Reflecting relatively
sound fundamentals, however, most North American markets should see rents either hold steady or decrease just marginally in the coming months.
Warehouse rents in the Asia Pacific region vary significantly with Japanese markets, Hong Kong, Seoul and Singapore all posting lease rates in excess of $15.00/sf/year. Asia Pacific land prices ranked number one and two in the world with Hong Kong at $1,024 per square foot, Seoul at $625 per square foot and Tokyo’s Ariake submarket at $416 per square foot.