Six Asia-Pacific cities were among the 10 most expensive for warehouse rents, driven by demand from logistics companies and retailers amid limited space availability, according to CBRE Group Inc.
The greater Tokyo area had the highest average rent in the first quarter of 2013, at $20.70 per square foot per year, and the strongest quarterly growth at 5.7 percent, a report from the broker showed. Rental increases remained subdued as many occupiers sought more evidence of strengthening in global economies before committing to space, it said.
The weakness “can partially be attributed to occupier reluctance and cost-containment,” Abigail Pitzner, global economist at CBRE, wrote in the report. Still, “occupiers looking to move were faced with very few options that met their desired specifications as large blocks of prime space in the best locations remained hard to find and expensive.”
Singapore was the third-most expensive market at $17.32 per square foot, while Hong Kong had the second-highest growth, at 2.3 percent, CBRE said. Brisbane, Sydney and Perth, which saw little change from the previous quarter, were also among the most expensive, and London, Stockholm, Sao Paulo and Paris rounded out the top 10, it said.