Although Beijing is not primarily known for manufacturing and logistics, it still offers many industrial facilities at competitive rates. As of early 2010, average rents were approximately RMB 23.7 per square meter, per month for logistics warehousing and RMB 27.9 for manufacturing facilities. However, Beijing industrial real estate has become a coveted item largely due to its location. In 2011, the average rents averaged between RMB 29.4 and 43. The large range is due to the disparity in costs for different types of manufacturing. While the cost is high in comparison to other provinces, SEZs and municipalities, companies pay a premium for its locale and proximity to a prime logistics hub. Utility costs for industrial purposes have been on a rise since power shortages across the nation in early 2011. Manufacturing facilities over the past five years have been growing so quickly that China’s infrastructure is struggling to provide the necessary resources to keep up. In some cases, China has cut back production hours to meet electricity and water supply needs. As China has struggled to meet electricity demands throughout the nation, the cost of electricity, from 2010 to 2011, increased by RMB 0.012 per kilowatt hour ($0.004 per kwh). In 2010, the utility costs for industrial purposes were approximately RMB 4.1 per cubic meter for water and RMB 0.41 to RMB 0.74 per kilowatt-hour for electricity. In the first half of 2011, water costs were between RMB 5.4 to RMB 5.8 while electricity remained consistent at RMB 0.47 to RMB 0.70.
Please click here for a list of Industrial Parks in Beijing that are specially developed for foreign investments and often times offer special incentives and/or programs for foreign companies.
A Note on Industrial Parks: Most new and developing industrial parks in China conduct real estate deals in-house instead of using third-party brokerage services.
|CBRE||Global real estate services firm with offices throughout China|
|Jones Lang LaSalle||Financial and professional services firm specializing in global real estate|
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