GBA Logistics Real Estate Investments Strategy – (2) Collaboration with Logistics Insider
- November 10, 2023
After discussing external environmental strategies in the previous episode, let’s delve into industry strategies for investing in logistics real estate.
- Diversified property investments:
Establishing a logistics hub on the western coast of Zhuhai, with its advantageous geographical location neighboring inland manufacturing bases to the north and international ports to the south, will facilitate the development of diverse industries. As the Greater Bay Area moves towards integration, neighboring cities such as Dongguan, Foshan, Huizhou, and Zhongshan, which are manufacturing centres, will drive increased demand for logistics and related industries.
Investment opportunities in logistics real estate will showcase diversification and multi-level prospects. Therefore, when investing in logistics real estate, consider different types of properties such as warehouses, logistics parks, and transportation hubs to cater to the needs of various industries and clients.
- Investments in potential industries:
Pay attention to emerging industries. The transformation of consumer attitudes and demand structures, along with the development of the pre-packaged food market, will further drive the expansion of cold chain logistics and warehousing markets. Integrated cold chain parks that combine production, storage, and exhibition functions will become a new market trend.
- Collaboration with logistics operators:
Establishing collaborative relationships with logistics operators can provide stable tenants and long-term partnership opportunities for logistics real estate. Collaborating with logistics companies or supply chain service providers can offer value-added services and enhance the attractiveness of logistics real estate.
To seize the opportunities in logistics real estate investment in the Greater Bay Area, conduct in-depth research on market demand, select superior geographical locations, diversify investment portfolios, collaborate with logistics operators, and focus on technological innovation. These strategies will help you make the most of the opportunities and achieve successful investments in logistics real estate.
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Asset partners comprise capital investors and real estate providers with financial resources and physical logistics properties such as warehouses, logistics centers, and distribution centers. Both parties are driven by achieving long-term stable returns and asset appreciation, but they may need more experience in operating logistics assets.
With the increasing demand for online shopping, the logistics industry faces significant challenges and opportunities. To meet the growing needs, logistics operators must invest substantial funds in acquiring new logistics equipment, such as automation, intelligence, and digitization, to enhance operational efficiency and service levels. However, such investments can be a significant burden for many logistics operators.