CBRE data demonstrates the ever-growing interest in Chengdu logistics market investment. The high-standard warehouse stock has amounted to 2.67 million sq. m., doubling the reading two years ago. As the consequence, the intensity of development has weighed on the market, leading to a rising trend of vacancy levels and eroding the negotiation power of landlords over the past few quarters. Logistics demand now tops the focus of the market. With aims to shed light on the structure of logistics demand, CBRE launched a survey focusing on the tenant profile of Chengdu high-standard logistics market in 2017. The survey covers more than 30 high-standard warehouse projects with total occupied floor areas exceeding 1.6 million sq. m.
Key finds of the tenant profile:
- E-commerce and 3PLs rise to dominate with the on-line shopping boom.
- 3PLs top the demand of two prime submarkets – Shuangliu and Longquan, while e-commerce dominates the markets in northern city – Xindu and Qingbaijiang.
- Domestic occupiers serve as a key driver of high-standard warehouse demand.
- 2/3 occupiers lease the space smaller than 15,000 sq. m., while large demand (30,000+ sq. m.) remains the focus of landlords.