Beijing Industrial Property Market Research & Forecast Report - 3Q 2014

Beijing Industrial Property Market Research &  Forecast Report - 3Q 2014

Beijing Industrial Property Market Research &  Forecast Report - 3Q 2014



Beijing’s industrial economy remained resilient in 3Q14, despite a deceleration in the overall economy. According to the Beijing Statistics Bureau, Beijing’s industrial output for the first eight months expanded by 7.0% y-o-y. At the same time, supported by the fast growth of e-commerce, the city’s online shopping sales rose by 56.6% y-o-y to RMB80.4 billion. Moreover, the Beijing Municipal Commission of Commerce confirmed that utilised foreign direct investment grew 6.0% y-o-y by the end of July 2014. In the light of the positive industrial economic conditions, growing demand and limited supply led to an increase in the average rent and a decrease in the vacancy rate in Beijing’s logistics real estate market during 3Q14.

There were no new projects completed in the market during this quarter and the total stock of Beijing’s logistics property market remained at 1.5 million sqm as of end-3Q14. By submarket, the Beijing Tongzhou Logistics Park (BTLP) remained the largest market share among all submarkets, accounting for 36.4% of the total during the quarter.





Demand for high quality logistics properties remained strong during the third quarter of 2014. Domestic consumption and the rapid growth of e-commerce drove significant demand for modern logistics facilities in Beijing. Enquiries from domestic and international companies in third-party logistics (3PL), e-commerce, fast moving consumer goods and archive management industries remained high during 3Q14. Many high quality logistics properties remained fully occupied. The lack of available logistics space limited net absorption to approximately 4,900 sqm, while the average vacancy rate edged down 0.3 percentage points to 4.8%.




On the back of the resilient demand for the city’s logistics property market, vacancy rates in all the submarkets decreased. By submarket, Beijing Airport Logistic Park (BALP) continued to be the most 受到该市物流物业旺盛市场需求的支撑,各个子市场的空置率均有所下降。就子市场而言,由于临近便捷的交通网络及数个运输服务公司,北京空港物流园继续成为北京物流市场中最受欢迎的

2Research & Forecast Report | 3Q 2014 | Industrial | Colliers International

Source: Research, Colliers International, Beijing 数据来源:北京高力国际研究部

Source: Research, Colliers International, Beijing

数据来源:北京高力国际研究部Demand for logistics space in newly completed logistics properties was strong in 3Q14. This was reflected in significant leasing transactions including: Geodis’ lease of approximately 8,000 sqm at Yupei Beijing Tongzhou Logistics Park; and the expansion of Compass Logistics, a third-party logistics provider for Subaru, by approximately 4,000 sqm in Yupei’s Beijing Tongzhou Logistics Park. In some cases, landlords with vacant space held off from signing leases to wait for tenants who can afford higher rentals. Yupei’s Beijing Tongzhou Logistics Park, a new supply in 2Q14, is an example and is receiving large volumes of enquiries from prospective tenants to take up the logistics space.


Chart 2 Beijing Logistics Rent by Cluster

图2 北京工业物业子市场租金

Chart 1 Overall Beijing Logistics New Supply, Net Absorption and Vacancy Rate 图1 北京工业物业市场新增供应、净吸纳量和空置率

Beijing Industrial Property Market Research &  Forecast Report - 3Q 2014

Beijing Industrial Property Market Research &  Forecast Report - 3Q 2014

favourable area in Beijing’s logistics market, due to being close-by to convenient transportation and the nearby cluster of transportation services companies. As a result, logistics properties in this submarket remained fully occupied. In the Beijing Tongzhou Logistics Park (BTLP), the vacancy rate decreased by 0.2 percentage points q-o-q to 10.3%. In Beijing Jingnan Logistics Harbour (BJLH), the vacancy rate was recorded at 2.2%, down by 1.0 percentage points q-o-q. 区域。因此,位于该子市场的物流物业维持满租状态。北京通州物流园的空置率环比下降0.2个百分点至10.3%。京南物流港的空置率录得2.2%,环比下降1.0个百分点。Given the strong demand and a lack of new supply, rentals continued to be buoyant across all submarkets in 3Q14. Overall, the average net effective rent of Beijing’s prime logistics property market climbed to a new high since 2012 of RMB36.2 psm per month, up 0.8% q-o-q. BALP remained the most expensive area and maintained the fastest rental growth among all submarkets at 2.4% q-o-q. This was followed by BTLP , where the average rent increased by 0.2% q-o-q to RMB39.2 psm per month.




There were no en bloc sales transactions concluded in Beijing’s 2014年第三季度,北京物流物业市场未录得整售交易。本季无



Beijing Industrial Property Market Research &  Forecast Report - 3Q 2014

According to the guiding document, Opinions on Promoting the Development of Business and Trade Logistics , issued by the Ministry of Commerce in September 2014, local governments will be encouraged to maintain supporting development of the third logistics enterprises and promoting development of commercial logistics in key fields. This document will serve as a backbone to strengthen and sustain the growth of the logistics property market in Beijing in the medium- to long-term.





Two new projects, including a 72,000 sqm logistics property in the Others submarket by GLP and a 55,000 sqm logistics facility in BJLH by Beijing Bailiwei Logistics Company, are scheduled for completion by the end of 2014. Given the current high levels of demand, these projects are expected to be absorbed quickly and availability in Beijing’s logistics property market will remain tight over the short-to medium-term. Limited supply will continue to favour landlords who have been holding what available space they have for tenants willing to pay increased rentals. As a result, rentals are forecast to grow as they have done since 2Q14.

logistics property market during the third quarter of 2014. The land market was also quiet, as no industrial land for logistics use was put up for sale during this quarter. Backed by the continued growth in e-commerce and domestic consumption , and the higher investment returns relative to other property sectors in Beijing, the logistics market continued to attract attention from both domestic and foreign investors, such as China Vanke Co ., Ltd., Blackstone Group, and KKR & Co. L.P . In addition, foreign logistics developers in China attempted to expand in China by teaming up with domestic market players such as Global Logistic Properties (GLP). According to GLP’s press release, its alliance with China Materials Storage and Transportation Development Company (CMSTD) will invest more than RMB3.6 billion in new logistics facilities and each currently own several logistics properties in Beijing.