Rental prices of prime logistics and warehouses to grow at slower pace

In 2022, rents grew by 10.2% YoY and 6.6%, respectively.

With occupiers becoming more cost-sensitive due to the weakened economic outlook, CBRE expects the pace of rental growth for prime logistics and warehouses to moderate in 2023.

CBRE added that the prime logistics segment also “continues to see an acute shortage of quality space as only a few projects are expected to complete by 2023 and most of this space has been pre-committed.”

In 2022, the prime logistics and warehouses segments recorded a full-year rental growth of 10.2% YoY and 6.6% YoY, respectively.

CBRE said the increase in 2022 was due to “occupiers raising inventory levels amidst supply chain disruptions, increased freight costs and inflationary pressures.”