Business Space Across the World 2003
Moscow was the fastest riser from last year. Prime industrial space in the Russian capital nearly doubled in 2002 to €162 per sq m ($16.50 per sf). Logistics companies are behind the strong demand with prices being squeezed upwards because of a shortage of good space.
C&WH&B head of European research David Hutchings commented: 'Industrial rents around the world have, for the most part, held up, despite a subdued world economy. They have performed better than anticipated. Only half of the sample countries experienced a decline in rents, with around nearly one in three showing an increase, while the remainder were stable.'
King Sturge's European Industrial Property Markets bulletin backs this up. According to King Sturge, concentration of economic activity in London, Paris and Madrid--1st, 7th and 11th respectively in C&WH&B's survey--is increasing the demand for warehousing around them. King Sturge says that other good prospects for industrial property are in Central Europe in areas such as Prague and Warsaw.
Prime industrial rents, averaged across Western European city regions, have remained unchanged over the last year. However, King Sturge senior European researcher Henry Woodruff commented: 'This masks some significant movements, with prime industrial rents having risen in Italy and France, but having fallen in Germany, Switzerland and Austria. In Central Europe, average prime industrial rents fell 8% in the past year and are now lower than average prime rents in Western Europe.'
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