Hong Kong posts strong industrial warehouse occupancy

Rents rising due to strong demand in the city.

Colliers International’s Global Industrial Midyear 2013 Highlights Report also noted that Singapore and London have also taken the lead in industrial warehouse rents.

It said demand for industrial warehouse space and modern distribution centers remains strong despite weak job growth.

Long-term, increased consumer demand in Hong Kong and China will drive the need for high-quality logistics properties throughout Asia Pacific’s industrial sectors. Some construction projects aimed at alleviating growing pains are in progress but several are not expected for completion until 2014.

As a result, many logistics companies such as those in Hong Kong have had to negotiate with landlords for lease renewals about one year ahead of lease expiration.

Colliers said markets like Hong Kong and Sydney are nearing full occupancy but other markets like Seoul are experiencing uneven industrial demand. It expect to see market resilience, increased demand for logistics and distribution center space, and development driven by build-to-suits by year-end.