Panattoni: developers still putting off new projects

2010-03-02

Although there have been signs of recovery on the industrial-warehouse space market in the last few weeks developers continue to refrain from launching new investments and are focusing instead on seeking tenants for existing facilities, representatives from Panattoni reckon.
Most new projects currently in progress are intended for the needs of specific clients (build-to-suit investments) or are based on pre-let contracts. In locations where there are several warehouses of a similar standard to choose from tenants can expect to reduce their rental costs by up to around 20%. However, such discounts depend primarily on the amount of space which tenants are interested in leasing, on the duration of the lease and on whether they intend to rent more industrial-warehouse space in the future.

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