At this level, UK rents are well ahead of the second-placedcountry, Ireland, where prime rents stand at €260 per sq m ($21.94per sf) per annum. Italy has the third most expensive space, at€248 per sq m ($21 per sf); Germany is fourth on €184 per sq m($15.50 per sf) and France fifth on €183 per sq m ($15.40 persf.)

Stewart Drummond, Head of Healey & Baker's European RetailWarehousing team, said: 'The concept of retail warehousing is beingsuccessfully exported across Europe from more mature markets suchas the UK, France and Germany. Retailers are increasingly lookingto cross borders in search of efficiency and market share, whileconsumers, with greater levels of personal affluence and carownership, are demanding a greater choice of modern retailformats.'

The report forecasts that future development activity will bestrongest in the relatively less developed markets of Southern,Central and Eastern Europe. The Czech Republic, Hungary, Poland,Spain, Portugal and Italy are all relatively under-supplied withretail warehouse space.