Sofia Boasts World's 20th Most Expensive Industrial Space

Industrial space rents in Bulgaria went up by 8% in 2008, which makes the country one of the leaders in Europe in terms of growth. Companies paid 0.50 euros more for industrial space in Bulgarian in 2008, compared to 2007, ccording to Cushman & Wakefield's Global Industrial Market Report, which was presented in Bulgaria by Forton International.

The report compares rents in 135 industrial locations all over the world. A total of 34% of the locations showed rental growth, while 41% posted declines. Rent levels remained unchanged in 25% of the locations.

With an average industrial space rent of 79 euros/sq. m., or 6.5 euros/sq. m. per month, Bulgaria moved 12 places up in the ranking of the most expensive locations to the number 20 spot, leaving many European capitals behind.

Global rental growth in 2008 was 2.4%, down from the 6.1% seen in 2007. The more mature markets of North America and Western Europe started to underperform earlier in the year, but by the year end all regions had seen a drop in market performance.

Thus European rental growth was limited at 1.7% in 2008. Nevertheless, rental growth in Central & Eastern Europe (CEE) over the year was 6.7%, almost the same level as seen in 2007.

The Polish and Ukrainian markets were extremely active and rents increased bu 28% and 25%, respectively, over the year.

Rents in South America rose by 12.4% over the year. Rio de Janeiro's market saw the highest global rate of growth over the year, with rents rising by 46% in 2008. South America's strong performance offset the -0.1% growth seen in North America in 2008.

The most expensive industrial locations were located in Western Europe. London's Heathrow was still the most expensive for eight straight year with a total occupancy cost of 185 euros per sq.m per year. Tokyo and Dublin followed with 179 and 157 euros/sq. m., respectively.

Rent prices in Bulgaria's neighboring countries showed little change. Romania retained its 38^th spot in the ranking with an annual rent of 60 euros/. sq. m. Athens fell four places with a rent of 72 euros. Zagreb ranks 22^nd with prices similar to these in Bulgaria. Unlike the considerable growth in the office space market, industrial space rents in Turkey are stable, hovering around 65 euros/ sq. m. per year.