Because of the lacking of the warehousing building projects, many projects may be planned, thus more pallet racking will be needed.
The report from Jones Lang LaSalle showed that the ring growth of the warehouses for tax free goods in the first quarter in Shanghai has reached 1.9% namely 1.24 Yuan per square meter, which is facilitated by the shortage of available Leased warehousing project.
Because of the lack of supplying, many customers turn to the cities around, thus the market rent in Kunshan raised to 0.91 Yuan per day, the ring growth reaches 2.9% and the vacancy rate has fallen to historic lows which is about 1.1% in the first quarter in Kunshan.
Hence many property rental agencies point out that the rapid development of network retail market will still promote the market’s demands for the logistics suppliers and logistics property.
In recent years, e-commerce is a widely discussed topic in the industrial estate field. Statistically, the total volume of nationwide network retail sales reaches 13.2 trillion Yuan in the end of 2012, compared with the 262.8 billion in 2009, the compound annual growth rate reaches 71.3%. As the representatives of e-commerce brand in the front line Taobao, Alibaba, Jingdong mall develop in the explosive pattern in the past few years, which pounded against the logistics estate market.
Tmall snatches nearly 30000 square meters of logistics area at one fell swoop in Songjiang bay international logistics centre, though there are little e-commerce company can achieve this, a large number of small or medium-sized e-commerce companies still want to find some storage area in west Shanghai which is almost full rent.
The information from Jones Lang LaSalle and Colliers International indicate by the end of the first quarter of this year, many logistics property suppliers said its high quality property in Shanghai are all in full rent state, so that the demands of the markets has been extended to the surrounding cities. Take the scarce available space and saving cost into consideration, many enterprises become to think about Kunshan, Jiaxing, Taicang and these around cities.
Influenced by the trends above, the first floor average rent of quality property in logistics estate market rose slightly in this quarter in Shanghai’s around cities just like Suzhou, Hangzhou, Nanjing, Wuxi, Taicang, Jiaxing, Ningbo and Kunshan, the ring growth reaches 1.4%, 0.91 Yuan per square meter every day, the main reason of this happening is the average rent in Kunshan and Taicang has raised.
What is noteworthy is there are signs that the business opportunities in logistics warehousing industry have attracted the attentions of the main e-commerce entrepreneurs’ impulse to invest.
The rising of warehouse rent may lead to the rising of the pallet racking price.
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