Chinese speed and demand gap in logistics real estate high ROI

The government actively promoting intensive land use in the background, declining urban industrial land index to a certain extent, limit the pace of development of logistics real estate.

Over the past 10 years, the logistics real estate in China has experienced rapid growth from zero to some, but overall, the supply of modern logistics facilities are still far behind the expanding demands. As of the first half of 2015, nine major logistics developer of non-occupied high standard logistics facilities in China stocks accumulated only about 20 million square meters, equivalent to the per capita area of ​​less than 0.015 m2.

High standard logistics facilities at the reality gap between supply and demand, the logistics property market is still a hot area of ​​capital chasing. Recently, the case of institutional investors and large-scale logistics developers cooperation growing, as GAW Capital Partners and Virunga joint venture; in April last year after the first injection, RRJ invest $ 250 million to Yu Pei again; Vanke also teamed up on the same period Blackstone announced the establishment of the first logistics company. In addition, ProLogis announced in July to set up $ 7 billion fund layout Chinese logistics market.

In this context, especially CB Richard Ellis published "logistics real estate articles Guide to Chinese property investment," it focuses on the 17 major cities in China logistics real estate investment opportunities. CBRE Research China Head, Executive Director Chen Zhongwei that: first-tier cities (especially Shanghai) and Chengdu is the best investment destination for China's current logistics real estate; logistics real estate China has basically formed Papadopoulos headed the competitive landscape, in financing relative to a single Chinese market, and later if you want to break the competition logistics real estate will be done.



Enterprises: one superpower and many

ProLogis Logistics real estate in 2004, doing business in China, opened a new chapter in China's modern logistics real estate. Thanks to international capital and operational experience, relying on first-mover advantage ProLogis aggressive expansion in China market and become the industry leader. Currently, ProLogis has 185 parks in the country, completed properties amounted to 11.8 million square meters, the scale even greater than the sum of the remaining eight developers. After years of development, led to Stephanopoulos, foreign and domestic Chinese logistics real estate competitive landscape has been basically formed.

City: comparative advantage in



"Logistics real estate articles Guide to Chinese property investment," it focuses on the 17 major cities in China logistics real estate investment opportunities. Data show that, depending on the radiation urban areas, mainly the industrial structure, transportation geographical advantages, economic fundamentals, logistics land stock and future supply trends and other factors, first-tier cities (especially Shanghai) China and Chengdu logistics real estate is the best investment of the current destination, and for Qingdao, Hangzhou, Changsha and other cities for investors need to remain cautious.



Area: layout along the coast further deepen

Modern logistics warehouse layout to the Yangtze River Delta, Pearl River Delta and Bohai Bay, and other traditional road network and logistics facilities are relatively developed regions mainly. With the continuous development of online retail and mobile networks, the future trend of e-commerce is continuing to penetrate the second and third and even fourth-tier cities. CB Richard Ellis in 2014 as published in the White Paper predicted logistics real estate, in addition to coastal cities, domestic and foreign developers are gradually strengthening the strategic layout of Wuhan and Chongqing along the Yangtze River hub nodes. According enacted in June, "national circulation node urban layout planning (2015-2020)", the east coast and along the Yangtze River Road, the two circulating been incorporated into the "three vertical and five horizontal" backbone of a total of eight national circulation PASSAGE. Good policy will further promote the development of these urban nodes logistics and warehousing market.