LONDON-Heathrow Airport is the most expensive place in the world to rent industrial property, according to a new survey by property consultants King Sturge. Rents near the airport top euros 214 ($256) per sm per year. Dublin has the next most expensive industrial space at euro 187.50 ($224.52); followed by Hong Kong at euro 170.49 ($204.16); New York City at euro 158 ($189.99); and Tokyo at euro 143.81 ($172.15).
Logistics companies in particular need to be near major transport hubs such as airports and motorways, but the cost of property at Heathrow is more than triple that of other European airports. According to the report, the high rents at Heathrow reflect its position as the UK's largest airport and the limited supply of land in the area.
Industrial rents across the world have been subdued in recent years. Heathrow, as elsewhere, has seen a fall in rents from euro 226.59 ($271.22) per sm per year in 2002.
Even so, Angus McIntosh at King Sturge expects Heathrow to retain its leading position because of the anticipated growth of the London economy and because of the development of a fifth airport at the terminal. "Despite the huge increases in fuel prices, the faltering domestic economy and the July 7 attacks, prime rental space around Heathrow remains more expensive for industrial rents than any city in the world," he says. "In the long run, this gap is likely to be maintained."
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.
