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Asia has witnessed generally stable warehouse/distribution rents over the past year and an improvement in manufacturing rents. Globally, manufacturing companies are aggressively pursuing locations within transitional economies and in many cases, Asia is the destination of choice for these firms. The cost of doing business and property valuer Brisbane the quality of finished product remain attractive incentives to many firms looking at places like China and India for their global manufacturing requirements.

African industrial development varies considerably by demand and country. Many countries are suffering from a lack of stable stock. South Africa continues to be the star performer with respect to industrial markets with stable business conditions and anticipated growth in 2005.

Demand for industrial space among tenants and owner-users outpaced supply in 2004 by a wide margin, which drove the vacancy rate lower for the first time since 2000. The decline was not dramatic, but then the industrial market did not get very far out of balance during the recession and subsequent listless recovery. From a low of 6% in the fourth quarter of 2000, the overall vacancy rate peaked at 10.1% in the first quarter of 2003 before receding slightly to 9.5% in the third quarter of 2004. The office vacancy rate, by comparison, more than doubled from the trough to the peak, testimony that the industrial market tends to stay more balanced thanks to a relatively short development cycle of six to nine months properties – rental houses Within the broad industrial market, the four major product types have responded differently to economic forces.

Certain markets around the USA have become distribution super-hubs, benefiting as occupiers consolidate several regional distribution facilities into a smaller number of massive state-of-the-art buildings. These distribution super-hub markets offer a combination of features attractive to relocating distributors: proximity to a port, a confluence of interstate highways, a reasonable drive time to large population centers, plentiful and easy-to-develop land, and – in some markets – tax abatements.

The South Bay, San Gabriel Valley and Mid-Cities markets in Los Angeles; the Riverside-San Bernardino area (often called the Inland Empire) east of Los Angeles; Northern and Central New Jersey and – in the center of the country – Chicago, Atlanta, and Dallas all fit this profile.Demand for state-of-the-art distribution facilities is strong, but not strong enough to raise the average asking rental rate of $4.38 per sq ft per year triple net, which has been moving sideways for a year. Nor has demand been strong enough to backfill many of the older buildings. The vacancy rate among warehouse-distribution properties was 9.5% at the end of the third quarter of 2004, similar to the overall industrial market vacancy rate.

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