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| Rental growth easing in European warehousing sector The Jones Lang LaSalle European distribution warehousing rental index grew by 0.5% over the first quarter and 2.6% over the last 12 months. This was especially driven by strong rental increases in Central and Eastern European (CEE) markets such as Warsaw which saw an increase of 9.5%, Budapest up 8.3% and Moscow reporting rents raised by 7.1% between Q1 2007 and Q1 2008. The Jones Lang LaSalle European Warehousing Clock also shows that rental increases above 5% have been achieved in Madrid (7.1%), Brussels (6.4%), Antwerp (6.3%), Stockholm (5.9%), Manchester (5.1%) and Rotterdam (5.0%). The strongest year on year quarterly rental increase was reported in Oslo, which was up 10% on Q1 2007 mainly due to limited supply volumes. However, whilst rents in Oslo increased over the year they have remained stable over Q1 in 2008 suggesting a stabilisation of rents going forward. Alexandra Tornow, Associate Director and author of the report commented: "Whilst annual growth in prime distribution warehousing rents remained stable, over the last quarter we have recorded a deceleration in rental growth, down to 0.5% form 0.8% in Q4 2007, indicating a now confirmed slowdown of rental growth in the European logistics sector. Over the first quarter, prime distribution warehousing rents have remained stable in the majority of European markets over the last three months. Out of a total of 32 markets examined, only seven recorded increasing prime rents. The reasons for rent increases in warehousing vary; on the one hand you have strong expanding economies in CEE and on the other limited supply of quality stock in primary logistics infrastructure hubs like Barcelona, Amsterdam and London." write your comments about the article :: © 2008 Construction News :: home page |