Global warehouse costs increase

Total global warehouse rental costs increased by 10.1% over the past year, according to Savills.

Savills World Research's analysis of 52 markets shows that, in terms of total costs including rent, service fees and taxes, London is still the most expensive warehouse market, with prime locations costing $42 each. square feet. Vacancy rates here have increased but remain lower than pre-Covid as tenants look for areas to operate efficiently and meet ESG (environmental, social and governance) criteria.

Sydney ranked second with a price of 27.5 USD per square foot, followed by Los Angeles with 27 USD and Hong Kong with a price of 26 USD. Savills representatives said that these locations often have characteristics such as limited land and low vacancy rates.

High-end warehouse rental prices continue to increase in many regions around the world.

In the Asia-Pacific region, warehouse real estate costs grew at a moderate rate of 5.3%. In China, rents remained unchanged, the warehouse market was affected by slower economic growth and weaker consumer sentiment in the face of increased supply. Warehouse costs in Beijing are on par with German cities. India, which has the lowest warehouse costs among the 52 markets surveyed by Savills, also has an upward trend.

According to Savills, warehouse rent growth continues to outpace inflation, with basic rent alone increasing by 11.8% in a year due to factors such as e-commerce growth and requests from tenants. ..

Mr. Paul Tostevin, Director of Savills World Research, said that warehouse costs will continue to increase. "In the long term, population growth will drive demand for goods and services, thereby increasing demand for warehouses, not only in developing economies but also in growth hotspots in developed countries," this person shared.

According to Savills, in addition to the cost of warehouse assets, tenants also need to consider costs for workers as well as electricity and diesel costs related to operating buildings and vehicles such as ships and cars.

Phi Hung (according to Savills)