‘Underdeveloped’ warehousing in China could be an opportunity for real estate
The online retail boom in China is fueling demand for storage spaces — and real estate investors should start thinking about putting their money in warehouses, said reports.
The demand for warehouses has been driven in part by the rise of e-commerce in China. A report by research firm eMarketer predicted China would be the world’s top e-commerce market in 2019, with sales expected to hit $1.935 trillion.
According to property consultancy firm JLL, Chinese mega cities such as Beijing, Shanghai and Shenzhen are seeing “robust demand” for industrial real estate, which includes warehouse facilities and distribution centers.
JLL also wrote that the “primary drivers of market demand in these markets continue to be retail, e-commerce, manufacturing and third-party logistics firms.”