The manifestation of insufficient supply of Logistics Real Estate

1) The gap of high-end warehousing facilities is huge, and the market concentration is low.


As our country enters the service consumption society, the demand of the retail consumer goods and the high-end manufacturing industry is exuberant, and the gap of the high-end facility becomes very huge. According to CBRE's Global High Quality Logistics Rental Report, the stock of non-self-used high-standard logistics facilities in major cities in China is only about 26 million square meters, with a per capita area of less than 0.015 square meters, while the total stock of high-standard logistics facilities in the United States is about 370 million square meters, or 1.17 square meters per capita, which is 78 times that of China.


However, the traditional old warehouse has obvious gap in all aspects and high standard storage facilities, and construction standards and security management are not standardized, which cannot achieve simple alternative transformation and can only choose to build new high standard storage facilities.


In addition, the market share of the main logistics suppliers in China is less than 3%, and the market concentration is very low. From the point of view of per capita logistics area and market concentration, the high-end logistics market in China is still in the early stage of the market, there is a lot of room for development, and promotion space is very sufficient, containing more investment opportunities.


2) High rent pushes up the rate of return on investment in logistics real estate.


Exuberant demand and insufficient supply have promoted the steady rise of rent in high-quality logistics warehousing market. The net return on logistics real estate investment in the first-tier city is more than 7%, which is much higher than the return on commercial real estate and residential property at 2% and 5%. In addition, according to the city, although the absolute rent level of some second-tier and ring-line satellite city logistics real estate is lower than that of first-tier city, considering that their land cost is also relatively low, from the point of view of rate of return, the rate of return of satellite city logistics real estate with better supply and demand pattern is also higher.