Rent price index: Storage and production halls beat classic logistics properties

06/05/2019

Rent prices for logistics, storage, and production property increased in 2018 by 8.7 % compared to 2017. These are the findings of the IWIP (real estate rent price index) published by IW Köln and consulting firm IndustrialPort. The index examines 16,000 buildings of different ages and categories. Individually, the sub-index for storage increased by 7 %, logistics by 2.2 %, and production by 14.2 %. Jan Stemshorn of Savills, who had contributed to the study, believes the low increase in the logistics segment is due to developments in the investment market: “Comparatively favorable rent conditions for large-scale developments with developer tenders balance out the significant rent increases in and around metropolitan areas.” In contrast to the classic surveys by the brokerage firms, this index also includes halls in outlying areas and very small spaces.


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