Industrial real estate heats up again

Low land prices, growing strong demand and stable and predictable returns are attracting more and more capital into industrial property when the risk of residential and commercial property begins to be released by heavy-handed regulation. In the 1 quarter of 2010, the Shanghai Industrial market's rental index began to show signs of growth after a 5-quarter consecutive low consolidation (Figure 1), and the vacancy rate index continued to decline in the first two quarters, by 7.87%, down 1.58% from the previous quarter, according to DTZ's study.　　At the same time, Beijing and Shenzhen, the various industrial properties, including industrial plants, warehousing and research and development of property vacancy rate continued to decline, rental level continued to rise, the rapid growth of market demand throughout the country to stimulate industrial property gradually warmer. On the other hand, since entering the 2010, the housing market macro-control has been increasing, the housing developers ' profit space is decreasing, commercial real estate competition is increasingly fierce, the risk is rising. Real estate market investors actively seek various new investment opportunities, explore the road of transformation. The industrial property market, with its low land costs and stable rental returns, attracts more and more investors, providing a seemingly safe haven for all the capital.　　With all the capital massing industrial estates, can industrial real estate become the next gold mine in China's real estate market after residential and commercial real estate? Cheap land and commercial matching the Temptation of industrial property returns generally 8-12%, up to 15%, if the government to give preferential policies, the rate of return will be higher than 15%. Compared with residential development, more than 20% profit margins, industrial real estate profit margins far less than the development of office buildings, residential. However, with the real estate profiteering era gradually gradually away, many developers of the gluttonous meal is withdrawn, such as industrial property as the days of meager food has already begun.　　After all, in the housing market regulation jittery, stable rental income appears to be particularly valuable. Moreover, in addition to the benefits of stability, industrial property also has "gold"-that is, the cost of cheap land prices and considerable commercial support. Since the 2008 financial crisis, industrial land price growth has fallen, far below the same period of increase in commercial and residential land prices (Figure 2). The National urban land Price Dynamic monitoring system Provides data shows that 2005-2009 5 years, the industrial plant price ratio is rising, the overall high, generally higher than the residential, or even higher than the commercial property prices, indicating that the sale of industrial land is obviously underestimated. According to the official statistics of the Ministry of Land and Resources, in the 1 quarter of 2010, the total level of 105 major cities in China was 2715 yuan/square meters, and commercial, residential and industrial land prices were 4822 yuan/square meters, 3938 yuan/square meters and 607 yuan/square meters, the lowest industrial land price, Not even a fraction of the commercial and residential land prices (Figure 3).　　And for many developers, to do real estate projects, the key factor affecting profits is land costs, cheap land is the protection of high profits. In addition to the low price of land, industrial real estate considerable commercial support is also the developer's eyes, "Sweet cakes." Current IndustrialReal estate from the traditional industrial plant to complete the upgrading of modern industrial park, so that many industrial park is far beyond the original industrial park positioning, began a large number of upstream and downstream related functions of the supporting. DTZ Real Estate Consultant (Shenzhen) Company assistant director Gu Wei pointed out: "The industrial land is not only the land price is cheap, moreover general industrial project total construction area 7% may make the supporting project construction, relates to the hotel, the office building, the apartment and so on higher profit margin related project." "Generally speaking, the area of industrial projects is larger, 7% of the area is considerable, a number of industrial projects, even far more than 7% of the matching ratio." In the capital (02777.HK) of the Golden port city Industrial Park, only one occupies an area of 273,600 square meters of logistics center, the rest of the plan is to develop commercial or residential products, of which the residential floor covers about more than 500,000 square meters, the office area is 319,200 square meters. In industrial projects, the proportion of industrial products is the lowest. There are a number of similar situations: November 29, 2009, Ocean Real Estate (03377.HK) cast Jinshi It industrial park land, per square metre floor price to 200 yuan, and in nearly million square meters of planning land, there will be 25% of the residential products as a supporting industry; combined Health and Exhibition (00754.HK)　　In Huizhou, Guangdong Province, two industrial projects, the area of 3000 mu and 1000 mu, planning will be close to 20% built residential. Therefore, although the investment income of industrial real estate projects is usually not comparable to residential property, if some of the supporting projects are developed, the developers can provide substantial additional compensation.　　At present, under the background of fierce competition in land transfer, participation in industrial project development is a good way to reduce the threshold of land acquisition. Stable rental returns, low land prices, considerable commercial support, industrial real estate looks like a real estate industry a warm "safe haven." More important, Gu Wei said, is that capital is invested in the industrial market, buying large industrial land, building factories, and after 3-5 years of market cultivation, rental income and land appreciation can bring at least 50% appreciation of the final property, which is even more impressive given the yuan's appreciation.　　This is a lot of capital to compete for industrial real estate alternative Abacus. Residential developers have been testing water for traditional residential developers have also begun to test the industrial property market. March 30, 2010, is located in Guangzhou Huadu Airport Economic Circle, and Guangzhou Baiyun International Airport Freight station adjacent to the capital of the city Logistics Park public bonded warehouse, export supervision Warehouse officially listed, the project covers an area of more than 2,200 acres, the planned investment amount of up to 3 billion yuan, marking the official march of the real estate industry. In early 2010, Sino-Ocean Real Estate also launched its first industrial real estate project-Jinshi IT Industry park, covers an area of 660,000 square meters, the total building planning area of more than 1 million square meters. Real Estate leader Vanke (000002.SZ) is also actively looking for opportunities to intervene in industrial real estate to achieve strategic layout. April 8, Xian city QujiangNew District Management Committee, said Vanke will be in Qujiang "development total investment of 8 billion yuan, the construction covers an area of 4872 acres of business office, Hotel apartments, modern logistics and other modern services as the characteristics of the International exhibition Industry Park." Vanke General manager Yu Liang said: "(project) focus on the construction of Qujiang International Exhibition Industry Park and surrounding business office, hotel apartments and other comprehensive development." "As early as the 2005 real estate industry macro-control wave, many of the original housing developers have infiltrated the field of industrial real estate." In Shanghai, Forte Group (02337.HK), Peng Xin Group, green Space Group, Lujiazui group and other well-known large developers have already been involved.　　In Guangzhou, including the exhibition of Health, Merrill Lynch Foundation, the Pearl River Investment and many other residential property developers have also moved into the field of industrial property. What is the intention of many residential property developers to be involved in industrial estates? "Over the next few years, industrial land indicators are decreasing and industrial land prices are rising inevitably." With a large number of industrial land listed companies, the effect of asset appreciation will be very obvious.　　Everbright Securities analyst Qiang said. Not once and for all. However, the industry is reminded that industrial real estate is a complex industry, the dependence on the industry is enormous, not only to consider the industry, logistics, transportation and other circumstances, but also consider the local industry and investment policies. In contrast to the simple "build-sell" profit model of residential real estate, the profits of industrial real estate mainly come from the following operations. Developers not only build several standardized plant, more important is the introduction of advanced management mode, for the presence of enterprises including design research and development, logistics, transportation, manufacturing, personnel training, information technology, such as a full range of value-added services, which developers put forward higher requirements.　　Therefore, the development of industrial projects is not once and for all. At the same time, innovative business models and regional choices are critical to the success of industrial real estate projects. Tun, due to the close combination of industrial real estate and industry, some real estate developers have established their own factories, land and cash shares in the enterprises, through professional incubation services to promote industrial real estate and industrial investment, formed a unique advantage of industrial real estate operation mode. Based on Tianjin industrial real estate Shangxin Mao Technology (000836.SZ) that is the original "Xin Mao mode", through the "buy land-building-investment-support-service-joint development" model to develop private science and technology park, industrial real estate as the capital base, and the industrial real estate equity, securitization,　　As a capital investment sunrise industry has become the core competitiveness of Xin Mao Science and Technology development, the formation of industrial real estate, High-tech Industries diversified development situation. In the choice of investment region, the difference of different regional economic development degree and the adjustment of national industrial policy will lead to the transfer of market investment hotspot. As Shanghai, Shenzhen and other first-tier cities in the industrial land prices rose faster, the Yangtze River Delta, the PRD, the industrial land price is far higher than the national average level, and the Bohai Sea area of the land price is still in the national average level, there is greater investment potential (Figure 3). At present, due to the first-tier urban land price and laborThe rapid rise of this, some multinational companies are trying to pull production base from the first-tier cities, two or three-tier cities as their new target. According to Jones, the second-tier cities in the six major regions of China will become the focus of the production location of the multinational enterprises. respectively: In Tianjin, Qingdao as the representative of the Bohai Sea area, Suzhou, Hangzhou as the representative of the Yangtze River Delta region, Shenzhen, Xiamen as the representative of southern China, Chengdu, Chongqing, Xi ' an as the representative of the western region; Dalian , Shenyang, Harbin as the representative of the Northeast and to Wuhan, Changsha, Zhengzhou as the representative of the central region.　　These cities will become hot spots for industrial real estate investment. To accelerate the transformation of economic growth mode and promote industrial transformation and upgrading become the themes of the 2010 sessions. Because of the close combination of industrial real estate and industry, whether the old industrial park upgrade or the construction of new industry parks, it is necessary to match the national Industrial policy. However, it is noteworthy that in the course of this round of industrial real estate recovery, if each road capital is swarming, may eventually step after the polysilicon and led industry dust, so that the sunshine industry suddenly supply surplus.