London Heathrow still world's most expensive industrial location

London’s Heathrow airport region has kept its title as the world’s most expensive industrial location, according to a new report from Cushman & Wakefield.

The latest Industrial Space Across the World report shows that one square metre of prime industrial space at London’s Heathrow airport costs EUR 211 mln to occupy for one year, an increase of 5%.

European cities account for seven of the top 10 locations in the global ranking, but regional growth was the slowest, at just 2.5%.

‘We are seeing a two-speed Europe,’ said Cushman & Wakefield’s Steven Watt. ‘Western Europe had an average rental growth of only 1.3% last year, while central and eastern Europe motored ahead at 7%. The market in CEE is being fuelled by manufacturers and distributors attracted by the lower cost base and from where they can serve both markets.’

The biggest increase was booked in Mumbai in India, where occupancy costs rose 94%, Cushman & Wakefield said. The second highest increase – 60% - was booked by Istanbul.

Of the 138 locations surveyed, 89% showed stable or rising occupancy costs, with rents rising an average 6%. South America showed the strongest growth on a regional basis at 25%.