Logistics market still 'competitive' in Birmingham
The Birmingham market for logistics occupiers is close to the European average, according to research by DTZ. The real estate adviser warns high property taxation has increased total occupancy costs but labour costs and flexibility remain "highly competitive".
Simon Lloyd, DTZ’s head of industrial and logistics, said: "Our research highlights a disparity in logistics occupancy costs across Europe, with the UK presenting one of the highest cost locations.
"In the Birmingham market, rents are close to the European average but UK locations have increased total occupancy costs because of high property taxation. Furthermore, fuel duty will increase costs for all UK operations. On the other hand, labour costs and flexibility remain highly competitive."
DTZ says the UK will offer "good value to logistics occupiers" until 2012, despite higher occupancy costs compared to other parts of Europe.
Its report, titled Occupier Perspective: European Occupancy Costs – Logistics 2010, reveals that UK occupiers will benefit from subdued growth in current occupancy costs until at least 2012, combined with relatively low labour costs when compared to other high-cost European markets.
