Investing in China's Modern Manufacturing Plants

As China continues to vigorously pursue manufacturing transformation and upgrading, modern manufacturing plants featuring efficient planning, comprehensive industrial support facilities, and spaces tailored to the complex spatial demands of high-tech industries will continue to serve as indispensable infrastructure.
 
Following the successive listing of four modern manufacturing plants C-REITs since 2022, this emerging format of commercial real estate has drawn increasing investor attention. Benefiting from a tenant structure aligned with industrial upgrading, high tenant retention and long lease terms, along with tenant diversification, modern manufacturing plants have demonstrated resilience amid recent macroeconomic fluctuations and offer investors cash flow featuring stability with growth potential.
 
CBRE advises investors to target modern manufacturing plants located in regions with a high concentration of advanced manufacturing, such as the Yangtze River Delta, Pearl River Delta, Beijing-Tianjin-Hebei, and Chengdu-Chongqing.