Expect rise in warehouse rents to continue

Build-cost inflation affects warehousing far more than other sectors, which explains the upward trend as the market adjusts

The warehousing sector is having to manage increased building costs associated with ever more demanding regulatory guidelines, progressive environmental awareness and general inflation. Picture: Getty

The warehousing sector has discarded its long-standing image as one of the “unsexy siblings” of the property market.

We are becoming accustomed to reading the latest bulletins setting out this sector’s strong demand levels, its low supply levels and indeed its investment yield levels (which are at 4 per cent).

However, for such an important sector there has been surprisingly little commentary on its costs base, the trajectory it is taking and what this means ...