US Logistics Leads in Prime Rent Growth

Prologis is building the Georgetown Crossroads facility in the Seattle region, where rent growth year over year was 16.9% in Q1. (Photo: Prologis)

LOS ANGELES—With only two markets represented in the global top 10, and at the lower end of the rankings at that, the US logistics sector does not lead the world in terms of high rents. Where it is dominant is year-over-year rent growth, according to CBRE’s latest survey of prime rents in the world’s industrial and logistics markets.

CBRE says five of the top 10 fastest-growing logistics markets are in the US, “cities that have undoubtedly benefited from strong demographics and significantly impacted by e-commerce and a transformation in their supply chains.” Leading the list is Seattle with 16.9% annual increases in prime rents at the end of the first quarter. That’s a sharp contrast to the 4.9% Y-O-Y growth measured there in last year’s survey.