Brief | Creating Resilience

Mainland China Brief Supply Chain Resilience to Boost Industrial and Logistics Demand March 2022

March 23, 2022

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  • Mainland China’s pursuit of zero-covid continues to result in sudden and intermittent disruption to manufacturing, logistics and supply chain operations.

 

  • CBRE expects this environment to drive the further strengthening of just-in-case strategies as occupiers look to build up inventory to mitigate potential disruption – a trend that will generate substantial new demand for industrial and logistics real estate on the mainland.

 

  • As industrial and logistics occupiers look to extend their footprint to emerging hubs, tier II and satellite cities of key metropolitan areas are likely to attract stronger demand.

 

  • Occupiers are advised to focus on securing space in modern logistics facilities in locations with good transportation links, while investors are recommended to consider constructing greenfield developments in emerging hubs.