A Wall Street Journal article this week revealed the opportunities available in China’s logistics real estate market, and RightSite’s Managing Director, Michael Cole was one of the primary sources cited in the story.
The feature story, titled A Big Bet on Warehouses in China, chronicled the ways that China’s rapidly expanding retail sector is driving demand for warehouse space and looked at the challenges facing logistics developers such as Singapore’s Global Logistics Properties (GLP).
In the article, RightSite was mentioned as follows:
“For logistics and warehouse space, the Shanghai market is incredibly hot,” said Michael Cole, managing director of Rightsite Website Technology (Shanghai) Co., an online trade publication tracking the industry. Shanghai warehouse space leases for roughly 34 yuan ($5.32) per-square-meter per-month, Mr. Cole said, and can deliver a generous yield relative to other property types of 9% annually.
The story also pointed out that GLP, which currently is the leading warehouse developer in China, has been able to nearly triple the size of its assets since it purchased 5,300,000 square metres of logistics space in China and Japan from Prologis in 2008. According to research by CBRE, China currently has only about 5.8 million square metres of modern logistics space, compared to 1.6 billion square metres in the US.
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