U.S. coastal logistics hubs continue to experience exceptional year-over-year prime rent growth, with Seattle, Wash., posting the strongest rent increase among hub markets globally, at 16.9%. In total, the U.S. is home to five of the 10 fastest-growing markets.
Among the world’s most-expensive markets, land-constrained hubs command a premium for logistics space, led by Hong Kong, at $32.40 per sq. ft. per annum. While growth in EMEA trailed the other two regions, there is still positive overall growth and a strong forecast for the remainder of 2017. E-commerce is undoubtedly impacting the demand for space, which is driving rent appreciation.
- Prime logistics rents continue to trend upward across all regions.
- Land-constrained global hubs command a premium for logistics space; Americas markets are more affordable.
- While U.S. coastal hubs continue to experience exceptional year-over-year growth, in-land markets are coming into play.
- Strong logistics demand continues in tier-one and coastal cities in China.
- EMEA prime logistics rents are rising despite bifurcation in markets.