London, Paris, Beijing … New Jersey?
When it comes to prime logistics rents, New Jersey can compete with some of best-known areas in the world.
At least, that was the conclusion of a new report from CBRE, which put New Jersey among the biggest gainers globally in prime logistics rents, which are the highest achievable lease rates for top-quality warehouse and distribution center space.
The report said prime logistics rents increased 3.2 percent globally in the year ending March 31, due to strengthening economies around the world and greater demand for distribution of goods bought both online and in stores.
New Jersey saw its prime logistics rents increase by an impressive 9.5 percent, an increase beaten by only six other areas worldwide, including U.S. locations Oakland (No. 3 overall, at 14 percent) and Seattle (No. 4, at 13.4 percent).
Vancouver led the way at an astounding 29.1 percent; Beijing was second at 19.8.
Prime logistics rents offer a means of gauging the strength and momentum of the high end of warehouse markets across the globe. That the growth of prime logistics rents has accelerated globally bodes well for the industry’s continued momentum, CBRE Vice Chairman Thomas Monahan said.
“New Jersey continued to experience tightening supply and strong demand from industrial users, resulting in a robust increase in prime logistics rents,” he said.
“With home to one of the country’s busiest seaports, and one of the most populous regions in the United States, New Jersey is well-positioned to see logistics rents climb to new record highs.”
Regionally, Europe, the Middle East and Africa, known as EMEA, posted a 4.3 percent gain in prime logistics rents, outpacing those of the Americas and Asia, as well as its own 1.2 percent gain from the previous 12-month period, according to the report. Much of EMEA’s increase can be attributed to improving economies in that region and resulting gains in consumption.
The Americas registered a 3.8 percent gain, on-par with its increase of the previous year. And Asia notched a 2.2 percent gain, surpassing its 1.4 percent advance from the earlier 12-month period.
CBRE said it examined rents in 71 global logistics hubs for its report. The company defines prime logistics rents as the highest achievable rent for industrial distribution space of the highest quality and specification in the best location within each market.