Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting to read:%0A%0A {0} %0A%0A {1}

China Logistics Leasing Demand Remained Stable In H1 2023

Mandy Qian • 14/09/2023
Cushman & Wakefield today released its Greater China Logistics Market H1 2023 report. The report includes key trends and a detailed analysis of the overall and regional Greater China logistics markets for the first-half 2023 period.
Tony Su, Managing Director, National Head of Industrial & Logistics Property Services, China, Cushman & Wakefield, said: “Overall logistics market leasing demand remained stable in H1 2023. In terms of logistics leasing demand by sector, the manufacturing and consumer sectors contributed much to take-up. E-commerce and third-party logistics enterprises remain the main tenants within the premium warehouse leasing market.”
Jiangsu, Guangdong and Zhejiang were the top three locations for total stock in H1, with each market also slated for a large volume of scheduled future supply in the next two years, which will bring some leasing pressure. But due to the well-developed regional industry and strong demand for premium logistics warehouses, new projects will be effectively leased. With the tight supply of warehousing land, the premium logistics warehouse market is expected to exhibit a positive development trend during the long term.
Mainland China Logistics Market
  • The total stock of premium logistics warehouse space in mainland China reached 114 million sq m in H1 2023
  • Approximately 5.02 million sq m of new supply entered the mainland China logistics market in H1
  • The overall vacancy rate increased 1.4 percentage points from Q4 2022 to 16.5%
  • Overall average rents rose 0.8% from Q4 2022 to RMB33.8 per sq m per month
  • Ahead, an additional 37.98 million sq m of new supply is scheduled for completion by the end of 2025
North China Logistics Overview
The premium warehouse market in North China recorded several new projects completing in H1, totaling approximately 1.56 million sq m of new space. Average monthly rent increased 0.5% from Q4 2022 to reach RMB30.8 per sq m. The vacancy rate for premium warehouses rose 0.6 percentage points to 19.3%.
East China Logistics Overview
The East China premium warehouse market performance was stable in H1. Compared with Q4 2022, overall average monthly rent rose 0.8% to reach RMB38.5 per sq m. The overall warehouse vacancy rate rose 3.5 percentage points to 15.3%. The e-commerce, 3PL and express delivery sectors remained the main tenants in the East China premium warehouse market.
South China & Central China Logistics Overview
The South China premium warehouse market experienced strong demand in H1. South China recorded 0.8 million sq m of new supply in H1. Compared with Q4 2022, the overall vacancy rate dropped 1.1 percentage points to 9.4% while the average monthly rent rose 1.6% to reach RMB40.4 per sq m. The Central China premium warehouse market remained relatively stable. Compared with Q4 2022, the overall vacancy rate dropped 0.3 percentage points to record 18.9%. Average monthly rent decreased slightly by 0.7% to RMB26.4 per sq m.
Southwest China Logistics Overview
Demand for premium warehouse space in Chongqing was stable, with the e-commerce, 3PL and manufacturing sectors being the key drivers. The average monthly rent rose slightly to reach RMB24.4 per sq m. Southwest China recorded 0.12 million sq m of new supply in H1. Compared with Q4 2022, the overall vacancy rate increased 1.8 percentage points to reach 20.4%. The average monthly rent rose 0.2% to reach RMB26.5 per sq m.
Hong Kong, China Logistics Overview
Hong Kong’s total stock of premium logistics space remained at 31.2 million sq ft (2.90 million sq m) in H1, with no new supply recorded in the period. A mega-project totaling 4.1 million sq ft (0.38 million sq m) near the Hong Kong International Airport is expected to enter the market in H2 2023. Ahead, a new warehouse project is expected to be completed in Kwai Chung (New Territories) by 2027. Jointly developed by ESR and Chinachem, the project is expected to span 1.5 million sq ft (0.14 million sq m). The overall vacancy rate remained stable at 3.4%, while monthly rents increased mildly by 0.5% in H1 2023 to HK$14.4 per sq ft.
Taiwan, China Logistics Overview
Total premium logistics stock increased to approximately 989,000 pings (3.27 million sq m). Incoming supply is expected to add 186,000 pings (615,000 sq m) of stock by the close of 2025, an increase of approximately 18.8%. Around 78% of stock is concentrated in Taoyuan City, close to Taoyuan International Airport. The average monthly rental level remained at approximately NT$650–750 per ping.
Shaun Brodie, Head of Business Development Services, East China & Greater China Research Content, Head of Greater China Occupier Research, Cushman & Wakefield, added: “Ahead, we expect the government and landlords to favor tenants with higher business efficiency and production volume. With the change in consumers' consumption preferences and, subsequently, the demand structure, the development of the semi-prepared food market will further promote expansion in the cold chain logistics and storage market. The development of comprehensive cold chain parks, integrating production, storage, display, and sales functions, will become an emerging market trend.”
Please click here to download the full report.
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in approximately 400 offices and 60 countries. In Greater China, a network of 23 offices serves local markets across the region. In 2022, the firm reported global revenue of US$10.1 billion across its core services of valuation, consulting, project & development services, capital markets, project & occupier services, industrial & logistics, retail, and others. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), Environmental, Social and Governance (ESG) and more. For additional information, visit or follow @CushWake on Twitter. 


HK Residential Market Report Q1 2023
Hong Kong Border Reopening With Mainland Supported Q1 Market Recovery

With the border reopening between Hong Kong and mainland China enacted in early February, coupled with the reduction of Ad Valorem Stamp Duty (AVD) in the 2023/2024 Budget, property buyers have regained confidence in the residential market, with prices rebounding. Residential transactions picked up in Q1 and are expected to record an increase of 49% q-o-q, to approximately 12,500 transactions.

Rosanna Tang • 16/03/2023

China Top Office Supply & Demand Trends Report 2023
Return to Office Recovery in 2023: Greater China Top Office Supply/Demand Trends Report 2023

Cushman & Wakefield has released its annual Greater China Top Office Supply/Demand Trends report. According to the report, by end of Q4 2022, the total Grade A office inventory in the core markets of the 21 major cities in Greater China that the firm tracks totalled 65.3 million sq m. Total premium core city office net absorption across the Greater China market for the whole year was 1.0 million sq m, a drop of 74.3% from the figure registered at the end of Q4 2021.

Mandy Qian • 16/03/2023

China Capital Markets Beijing Suning Life Plaza Transaction 2023
Cushman & Wakefield Capital Markets Facilitate US$400 Million (RMB2.81 Billion) Beijing Suning Life Plaza Transaction

Cushman & Wakefield's Greater China Capital Markets team have successfully facilitated the acquisition by CapitaLand of the Beijing Suning Life Plaza mixed-use development from Suning for a total consideration of RMB2.81 billion (approximately US$400 million). 

Rosanna Tang • 06/03/2023

China Commercial Real Estate Market Trends 2023
China Commercial Real Estate Market Trends 2023

A panel of senior Cushman & Wakefield subject matter experts shared an in-depth discussion of China’s key commercial real estate market trends for 2023 at an online seminar held on February 9, 2023.

Mandy Qian • 20/02/2023

 ANREV Investment Intentions Survey Asia Pacific 2023
Global Investors Set to Expand Allocations to Asia Pacific Real Estate, Finds New Survey

Institutional investors plan to maintain their allocations for real estate globally, according to the 2023 Investment Intentions Survey published by ANREV, INREV and PREA. Of note, investors in Asia Pacific indicate an expectation of raising real estate allocations. Over half of the survey respondents indicate an expectation to increase their allocations to Asia Pacific real estate over the next two years.

Mandy Qian • 10/02/2023

Global Data Center Market Report 2023
Hong Kong Jumps to Fourth-Placed Ranking in Global Data Center Market Comparison

Hong Kong has reconfirmed its position as a top data center market globally in Cushman & Wakefield’s latest Global Data Center Market Comparison report. Hong Kong jumped to fourth in the overall rankings in the new report, scoring highly across categories; with strong connectivity, consistent demand, availability of cloud services and a business-friendly tax structure offsetting high land prices.

Mandy Qian • 06/02/2023

Global Office of The Future Report 2022
New Report Confirms Hybrid Office is Becoming the New Norm Globally

Our latest insight establishes three realities: demand for office space is accelerating, hybrid is here to stay, and the role of the office has changed — and we explore their implications for office-using companies and workers.


Mandy Qian • 19/07/2022

HK Residential Market Report Q2 2022
Hong Kong Home Prices Stabilize in Q2 as Transactions Jump 48%

With the fifth wave of the pandemic gradually being brought under control, the city’s residential market has been progressively recovering since the month of April. Total transactions in Q2 are now expected to reach 14,900, up 48% q-o-q, although this still represents a drop of 32% y-o-y.


Asia REIT Market Outlook Report 2021 2022
Industrial REITs Well Positioned for Long-Term Growth

Real Estate Investment Trusts (REITs) in Asia demonstrated relative resilience through the peak COVID-19 period, backed by robust capital structures, sufficient financial liquidity, and supportive regulatory policies. All REIT classes gained overall momentum to recover strongly during 2021, when the annualized total return rate of REITs of each property type turned from negative to positive.

Mandy Qian • 09/06/2022

 China Post Lockdown Recovery June 2022
Post-Lockdown Recovery

Several COVID-19 Omicron variant outbreaks have had a major impact on production and life in general in some Chinese cities. Local governments have taken active measures to deal with the epidemic and effectively promote steady economic growth. As production and markets reopen in cities like Shanghai, we believe economic recovery is at hand.

Mandy Qian • 07/06/2022

HK Investment Market Report 1H
Steady Growth in Hong Kong Investment Activities in 1H 2022

Full-year 2022 investment transaction volume in Hong Kong is now expected to reach HK$70 billion, with industrial assets and development sites continuing to be sought-after.


Mainland China Data Centers 2022
Data Centers in Mainland China

According to the Data Centres in Mainland China - Four Points to Process in 2022 report, at the beginning of 2021, cabinet stock in China touched 3.6 million, with the anticipation that this number will surpass 4 million.

Mandy Qian • 07/04/2022

With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Privacy & Cookies.
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All