Logistics property rental set to soar over coming years

Investors and businesses looking to acquire logistics properties should consider land in neighboring cities instead of Shanghai as prices are expected to soar in the coming years, according to a new industry report by Colliers International.

"Due to irm demand and limited land supply, we expect vacancy for prime logistics property in Shanghai to fall and rents to rise in the coming years," said Chen Tiedong, director of Colliers' East China research division.

"Due to the scarcity of vacant areas and land supply in Shanghai and nearby cities, we advise potential tenants and investors to plan for the future and consider logistics land or properties in outlying cities with high accessibility, supportive local policies and competitive rents. We expect the annual rental growth in Shanghai to be between 5 and 7 percent," he added.