Two exciting years of the industrial real estate market

If at the beginning of 2020 there were only 260/335 industrial parks operating with a occupancy rate of 75.7%, by 2022, there were 291/395 industrial parks operating with a occupancy rate of 70.9 %. Besides, the changing trend of the market is also seen more clearly through the actions of today’s leading industrial real estate developers such as BW.

Exclusive “Special Zone” for e-commerce

According to Mr. Tran Duy Dong, Deputy Minister of Planning and Investment, one of the trends of interest is the “exponential” development of e-commerce. The sudden increase of this modern form of trade during the pandemic has spurred a huge demand for warehouse real estate and logistics services.

This trend can be seen more clearly through the lesson of BW’s transformation of Tan Phu Trung Industrial Park, from an ordinary industrial park to a logistics center for units operating in the field of e-commerce.

“The growth in e-commerce has been and will be translated into a dramatic expansion in last-mile logistics, which will require a substantial supply of institutional-grade warehouses. Therefore, building hubs for e-commerce and retail continues to be our focus, in order to maximize the market effect,” said Lance Li, General Manager of BW.

After Tan Phu Trung has filled to capacity, a BW representative said that it is expected that tenants will find premises in Xuyen A Industrial Park, which has a prime location less than 10km from Tan Phu Trung. In addition, the locations that e-commerce service providers can target are Tan Dong Hiep B and Song Than Areas, located within a 20km radius of the busy downtown area of ​​Ho Chi Minh City, which is already presence of many logistics service providers such as, Germadept, Lazada Express, 3PL Nhat Tin

High-rise ready-built warehouse to the throne

High-rise ready-built warehouses are also another trend that BW representatives said will accelerate in the near future. Accordingly, high-rise industrial and logistics facilities will be an important solution, helping to solve the shortage of land in central locations and the problem of rapidly increasing land prices. This is also the form chosen by many business owners because it saves time, costs and quickly goes into production.

The BW representative said that these warehouses will be located at their existing and under construction production centers, which will significantly save costs and time. Currently, leading industrial real estate developer BW also has a wide range of high-rise factory products for tenants with different budgets, in locations such as Tan Phu Trung in Ho Chi Minh City, and Xuyen A. , Vinh Loc in Long An, BWSCC and Tan Dong Hiep B in Binh Duong and Nhon Trach in Dong Nai.

Logistics for production needs will skyrocket

According to Lance Li, the Covid-19 epidemic in the past time has disrupted the supply chain, causing many factories to lack raw materials for production, even up to 6-12 months depending on the field. Therefore, an important trend in the coming time is the demand for logistics for production, in order to meet the increasing demand for storing goods and raw materials to ensure production stability.

The market record also shows that large-scale multinational corporations, multi-industry have chosen to build new production bases in Vietnam. These giant manufacturers, also known as “Queen Bees” – Queen Bees, have also brought along hundreds of satellite and ancillary businesses, thereby driving the demand for more storage space.
“We as a market leader thought hard and developed this warehousing model in manufacturing centers, such as My Phuoc 4 and VSIP 2A which are the hubs of manufacturing clusters. The strong development of Binh Duong or Nhon Trach is the center of the existing automotive and electronics industries. The presence of current Queen Bees such as Vinfast, LG, Kyocera, Regina Miracle or Pegatron, etc. is very suitable for storing warehouses for production purposes. We expect warehouse demand in this area to increase in the near future,” commented Mr. Lance Li.

According to Mr. Tran Duy Dong, Deputy Minister of Planning and Investment, the country currently has 335 industrial parks with a total area of ​​more than 100,000 hectares that are continuing to develop strongly to meet the investment and production needs of investors in the region. and abroad.

“Industrial parks are gradually transforming their development model towards more sustainable economic, social and environmental aspects,” said the deputy minister of MPI.

In fact, industrial real estate developers like BW are still promoting investment in land funds, and at the same time providing suitable solution packages to help tenants quickly put into operation smoothly. With the right strategies, up to now, BW is still one of the market leaders with 35 projects in 10 key industrial provinces, with a total land area of ​​776 hectares, reaching a rental capacity of nearly 97% for properties. projects have come into operation.

Doan Phong