Due to the large demand for the Shenzhen Special Economic Zone’s (SEZ) preferential tax policies and development incentives, rent prices inside the SEZ tend to be higher than those throughout the rest of the city. As of early 2010, average rents within the Shenzhen SEZ were approximately RMB 28.5 per square meter per month for industrial manufacturing and warehouse facilities and approximately RMB 51 per square meter per month for High Tech R&D facilities. Prices outside of the SEZ were between RMB 12 and RMB 22 per square meter per month for industrial manufacturing and warehouse facilities and between RMB 25 and RMB 30 per square meter per month for High Tech R&D facilities. Utility costs for industrial purposes rose in early 2011 due to power shortages across the nation. Manufacturing facilities throughout the past five years have been growing so quickly that China’s infrastructure has been struggling to supply the necessary resources to keep up. In some cases, China has cut back production hours so that electricity needs and water demands may be met. As China struggled to meet electricity needs throughout the nation, the cost of electricity, from 2010 to 2011, increased by RMB 0.012 per kilowatt hour ($0.004 per kwh). In Shenzhen the average water cost for 2010 was around RMB 2.95 per cubic meter and in 2011 it dropped about 28 percent to RMB 2.3 per cubic meter. However, the electricity pricing slightly rose from 2010, RMB 1.04 per kilowatt-hour, to 2011, RMB 1.2 kilowatt-hour.
Please click here for a list of Industrial Parks in Shenzhen 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 service|
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