Benefiting from the strong industrial development and local consumption, the logistics market in Greater Beijing Area has maintained a strong growth momentum in 2021. The shortage in new supply has resulted in the continuous growth of the rental rates of high-quality warehouses. As of the first quarter of 2021, the average rent of Beijing's prime logistics reached RMB1.74 psm per day, with the occupancy rate up to 98%. Despite that more future supply is expected to enter the market in 2022, the firm logistics demand would continue to ramp up the rental level in Beijing and surrounding areas.
To cater the development of consumption-oriented economy, logistics demands from daily services and consumer goods sectors are growing steadily. The pandemic has reshaped the public’s consumption behavior and habits in daily life, consumption and health & wellness, which further stimulate the logistics demand particularly in cold chain sector. Significant capital inflow from both domestic and foreign investors has made the Greater Beijing Area’s logistics market one of logistics hotspots in China. With the continuous development of the logistics infrastructure, the logistics market in the area shall enjoy stable growth. Looking forward, limited land supply might indicate the shortfall of new supply in the near future. The regionwide rental level is expected to increase steadily and bring satisfactory rental performance for the investors.