London warehouses world's priciest, report

News Story
- 24 Aug 2023 ( #1142 ) - London, United Kingdom
2 min read
London warehouses are the world's most expensive
London warehouses are the world's most expensive

London and Sydney are home to the world’s most expensive warehouses, according to the latest analysis by Savills World Research.

In an update to its 2023 Impacts program, Savills analysed warehouse markets around the world, finding total warehouse costs, including rent, service charges and taxes, increased 10.1% in the year to June 2023.

Savills found prime warehouse space in London was the priciest of the 52 markets examined, at USD42 per sqft.

Sydney leapfrogged into second place, with warehouse space costing USD27.50/sqft., displacing Hong Hong to fourth (US $26/sqft.). Los Angeles, meanwhile, remained third (US $27/sqft).

Savills says warehouse rental growth has continued to outstrip inflation, even though the pace of property costs increases slowed in the first half of 2023 to 4.4%, compared to a 5.4% rise in the first half of last year. 

Savills World Research director Paul Tostevin says: “While the rate of warehouse property cost increases may be decelerating, higher costs are here to stay. 

“Nonetheless, even in the currently cheapest locations, in the long term, population growth and structural trends are likely to fuel demand for goods and services, and in turn warehouse requirements; this applied not only to developing economies, but in the growth hotspots of developed ones.  

“That only increases occupier emphasis on the best located, most efficient warehousing space, underpinning demand for prime warehouses and in turn future rental growth.”

Savills says that in addition to warehousing property costs, occupiers also need to consider labour costs (usually a higher percentage of their total expenditure) which have risen by 7.4% in the 12 months to June 2023 across the 52 markets examined, and the electricity and diesel costs associated with operating buildings and large fleets of vehicle.  

Diesel costs are falling, but electricity costs continue to rise – again emphasising the importance of prime space that may be more energy efficient or even have their own power generation on site.

LogiMAT product award winners announced
LogiMAT product award winners announced 18 Apr 2024 - Stuttgart, Germany - 2 min read
Applied Manufacturing Technologies launches AI for ASRS
Applied Manufacturing Technologies launches AI for ASRS 11 Apr 2024 - Orion, MI, United States - <1 min read
Blue Yonder to buy One Network
Blue Yonder to buy One Network 11 Apr 2024 - Dallas, TX, United States - 1 min read
Do you have materials handling news? Submit your news here

Showcased in the Virtual Expo

“I really enjoy your newsletter and share the articles with all my training team for industry currency. I also print and display specific articles on forklift safety and accidents on our notice board for all the learners who attend our training courses to read...”

Gavin Trim - CEO, High Risk Work Licence Assessor, Mechanical Handling Equipment Specialist - Nationwide Training

Thanks Gavin for sharing your experience with Forkliftaction

Words of support …

After advertising with Forkliftaction.com, we got many enquiries regarding interest to be our distributor. Mostly from Europe and USA but including a few in ASEAN. We feel that the advertisement was useful and good for market expansion.

Lawrence Xu, Assistant Sales Manager - Resonac Asia Pacific Pte Ltd.

Are you recruiting? Find your ideal candidate among a diverse range of materials handling professionals:

Forkliftaction's JOB MARKET

CeMAT Australia is returning to the Melbourne Convention and Exhibition Centre on July 23 - 25, 2024.

Register for free and experience the leading global trade show for intralogistics, materials handling, and supply chain management, and familiarise yourself with the latest technology in your sector!

Register Now! 

Showcased in the Virtual Expo

Are you recruiting? Find your ideal candidate among a diverse range of materials handling professionals:

Forkliftaction's JOB MARKET

PREMIUM business

GemOne
Telematics for industrial fleets. Fleet & safety management solutions: track vehicles, boost efficiency, operate safer, & avoid unexpected downtime.

Are you recruiting? Find your ideal candidate among a diverse range of materials handling professionals:

Forkliftaction's JOB MARKET

CeMAT Australia is returning to the Melbourne Convention and Exhibition Centre on July 23 - 25, 2024.

Register for free and experience the leading global trade show for intralogistics, materials handling, and supply chain management, and familiarise yourself with the latest technology in your sector!

Register Now!