2016 first quarter Logistics Market Overview

Electricity suppliers, car prices booster strong start
Benefited from strong demand for electricity supplier, the national non-bonded market ushered in a strong start. For example, Jingdong, respectively in Chengdu Xindu project ProLogis and Shanghai Qingpu Goodman project more than fifty thousand square meters of leased area; Abou new project is located in Beijing Airport nearly 100,000 square meters have also been rookie entire rent. In addition, to avoid such a major accident Tianjin Port explosion caused huge losses similar, insurance companies urged car companies choose a high standard warehouse storage of vehicles. Therefore, the demand from the growing vehicle storage, such as the public sector in Shanghai Lingang lease more than forty thousand square meters area. Due to the large car firms need to upgrade to a high standard from ordinary yard warehouse, we expect that demand will grow significantly in the near future.


Trading Portfolios highly sought after by investors
Following Goodman introduced to the market a portfolio of four properties last year, a number of international developers will also have to package some of its assets to the market. This provides an excellent opportunity for the logistics market wants hot slice of investors. At the same time, the major domestic developers are also expected through the listing to attract more investor interest. For example, Yu Pei was preparing documents before submitting March 30 to the Hong Kong Stock Exchange and plans listed in the first of this year. Redwood Group after the merger with the other domestic giants Dealers are also actively preparing for listing in Hong Kong.

Rent supply pressure resulting in non-bonded stagflation
Despite of the strong to the quarter of the domestic non-bonded warehousing rents were flat overall market. This is mainly due to the large supply of some cities in the emerging sector caused the owners to lease prospects concerns. Coupled with the high vacancy rate of existing projects, the owners of these areas is difficult to significantly raise the rent. However, when talking about rent fell too early - in popular cities and sectors of the project remains strong gains.