End-2012, industrial space occupancy costs in Bucharest stood at $76 per sqm per year, placing the city 13th among 54 global markets.
Bucharest, alongside Hong Kong (-2.2%), Milan (-0.5%), Anvers (0.1%) and Rome (0.1%), will see the lowest cost increases in the analyzed period, whereas Dublin (5.4%), Melbourne (3.4%), Riga (3.1%), Vilnius (3.1%) and Shanghai (3%) will see the highest cost increases until 2017.
Bucharest ranks sixth among Europe’s least expensive markets for companies looking to lease industrial space, after Marseille, Anvers, Brussels, Lyon and Budapest. Occupancy costs in Madrid, Barcelona, Prague and Milan are higher than in Bucharest.
London Heathrow remains the most expensive market globally – at $313 per sqm per year, followed by Hong Kong, Zurich, Singapore and Oslo.
The global top five least expensive markets are dominated by the Chinese Tier II cities of Wuhan, Shenyang and Chengdu, with Atlanta and Marseille completing the top five.
Despite above inflation growth in 2012, DTZ’s five-year outlook for logistics occupancy costs is more benign at an average annual growth of 1.6%, well below projected inflation.
Occupancy costs in Europe are expected to grow by an average annual rate of 1.4% over the five-year forecast period, below the projected inflation rate.