Logistics Real Estate Investment Strategies for the Greater Bay Area

The logistics real estate market in the Greater Bay Area (GBA) has performed well in recent years, driven by the region’s solid economic performance; increasing consumption; a range of government incentive policies; and robust expansion of its export-oriented economy. With vacancy remaining low and rents registering strong gains, investors are stepping up their purchasing activity.

With the investment market set to gain further momentum in the medium- to long-term on the back of rapid e-commerce growth and recovering import/export demand, CBRE has performed a thorough analysis of the macroeconomy, transportation, supply, demand, rental performance and investment conditions in the nine major GBA cities to compile a list of viable logistics property investment strategies.

These investment strategies have been divided into the following three tiers:

 

First Tier

Focus on existing logistics properties and urban renewal projects in Shenzhen, Guangzhou and Dongguan.

Second Tier

Focus on existing logistics properties and selected greenfield development opportunities in major logistics parks in Foshan, Huizhou and Zhongshan.

Third Tier

Focus on greenfield development opportunities in main logistics parks in Jiangmen, Zhaoqing and Zhuhai. 

The nine major GBA cities covered in this report are Shenzhen, Guangzhou, Dongguan, Foshan, Huizhou, Zhongshan, Jiangmen, Zhaoqing and Zhuhai. Owing to their status as Special Administrative Regions, Hong Kong and Macau were not included in this report, despite forming part of the GBA.