Structural steel costs are predicted to increase by around 8-10 per cent this year, which is likely to lead to an increase in rent levels for new buildings.
Steel prices rose rapidly during 2004 however, recently the rate of increase though rising, has moderated.
Steelwork can represent as much as a sixth of the cost of the shell of a typical distribution centre, therefore it continues to heavily influence total costs.
Frazer Darrington from Severfield-Reeve Structures commented that steel prices have risen by around five per cent over the past two to three years and were likely to stay ahead of inflation. Portal frame steel.