Chinanews.com, Wuhan, August 5 (Reporter Liang Ting) CB Richard Ellis released the latest "China Logistics Market Report for the Second Quarter of 2020", showing that due to the rapid recovery of economic activities and the release of suppressed demand, China's high-standard storage demand There was a significant rebound in the second quarter of this year.
CBRE data shows that in the first half of 2020, the net absorption of high-standard warehouses has recorded a total of 900,000 square meters, an increase of 31% compared to the same period last year, of which the second quarter increased by 110% year-on-year. Benefiting from the rebound in demand in the second quarter, vacancy rates in cities including Nanjing, Hangzhou, Ningbo, Chengdu and Chongqing all declined to varying degrees.
According to the observation of CB Richard Ellis, third-party logistics and e-commerce are the main driving forces of the current recovery, which account for more than 80% of leasing demand. In addition, the epidemic has spawned the growing demand for fresh food and pharmaceutical retailers and central kitchens, driving the continuous rise of cold chain demand.
In the Wuhan warehousing and logistics market, emerging group-buying e-commerce companies and cold chain tenants are the main rent-seeking customers in the second quarter. The demand for single-unit area has decreased compared with the same period last year and is more sensitive to rent. In order to support tenants through the difficult stage, following the implementation of rent reduction and exemption policies by some landlords during the epidemic, most developers have adopted additional renovation periods and other flexible ways to handle the individual needs of tenants in the new quarter to help tenants resume work and production smoothly.
The report pointed out that in terms of rents, first-tier cities and surrounding satellite cities remain resilient. In the Midwestern market, due to short-term oversupply, landlords give priority to increasing the occupancy rate. Therefore, the overall rent of high-standard warehouses in the second quarter of 2020 decreased by 0.6% from the previous quarter.
CB Richard Ellis predicts that the peak of high-standard warehouse supply will continue until mid-2021. A total of nearly 6.45 million square meters of high-standard warehouse space will be delivered in the next 12 months. The vacancy rate will peak in mid-2021 and then show a downward trend. Therefore, it is expected that the overall rental growth in the next six months will remain stable, but the first-tier and surrounding satellite cities can still achieve an annual growth rate of 2% to 3%. (Finish)