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Supply chain concern to boost industrial and logistics real estate demand in China
Research - MARCH 25, 2022

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Supply chain concern to boost industrial and logistics real estate demand in China

by Andrea Zander

China’s pursuit of zero-covid continues to result in sudden and intermittent disruption to manufacturing, logistics and supply chain operations, according to CBRE.

CBRE expects this environment to drive the further strengthening of just-in-case strategies as occupiers look to build up inventory to mitigate potential disruption — a trend that will generate substantial new demand for industrial and logistics real estate in China.

As industrial and logistics occupiers look to extend their footprint to emerging hubs, tier II and satellite cities of key metropolitan areas are likely to attract stronger demand.

Occupiers are advised to focus on securing space in modern logistics facilities in locations with good transportation links, while investors are recommended to consider constructing greenfield developments in emerging hubs.

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