This live webinar will begin shortly…

yi

Mainland China
Logistics
Market Overview
2020 Review &
2021 Outlook
Greater China Logistics Market Q4 2020
AGENDA 1. CHINA LOGISTICS MARKET
OVERVIEW

Joe Xiao
Director, Industrial & Logistics
Property Services
China

2. Q & A

Catherine Chen Stephen Qiu

Director, Research, Deputy Managing Director
Greater China Capital Markets
China

Gordon Marsden Joe Xiao

Regional Director Director, Industrial & Logistics
Asia Pacific Capital Property Services
Markets China

Greater China Capital Markets Webinar 2

Market Overview
China’s Logistics Market – Q4 2020

The total stock of premium logistics warehouse space in mainland China reached 71.98 million sq
m in Q4 2020.

The overall vacancy rate hit 12.3%, up just slightly by 0.3 pp q-o-q, despite 2.53 million sqm of new
supply being delivered in Q4.

The premium logistics warehouse sector experienced strong demand as economic activities and
consumption levels continued to recover.

Overall average rent rose 0.5% q-o-q to reach RMB35.0 per sq m per month.

Ahead, an additional 31.92 million sq m of new supply is scheduled for completion by the end of
2023.

Increasing importance of temperature control for food and pharmaceutical storage.

Greater China Logistics Market Q4 2020 Source: Cushman & Wakefield Research 3
Macro Economy
Major Logistics Indicators – Q4 2020

Mainland China
Q4 GDP
Growth Rate
6.5%

Industrial Added Value National Fixed Asset Investment

Y-o-Y Growth Rate Y-o-Y Growth Rate
7.1% Logistics 2.9% (2020 FY)
Facilities

China Logistics Prosperity Index

56.3% (Oct.) Total Retail Sales

Annual Growth Rate
57.5% (Nov.) 4.6%
56.9% (Dec.)

Greater China Logistics Market Q4 2020 Source: Cushman & Wakefield Research, National Bureau of Statistics of China, 4
China Federation of Logistics & Purchasing
Logistics Market
Logistics Land Supply Q4 2020

Primary Industry and Logistics Land (million sq m) Ratio of Primary Logistics Land (%) Share of primary logistics land
by industry
20 50%

18 45%

16 40%

14 35%

12 30%

10 25%

8 20%

6 15%

4 10%

2 5%

0 0%
Guizhou

Hubei
Shandong

Sichuan

Heilongjiang
Jiangxi
Fujian

Tianjin

Henan
Beijin
Shanghai

Guangxi
Yunnan

Chongqing
Jilin

Liaoning
Hebei

Shanxi
Guangdong
Jiangsu

Hunan
Anhui
Zhejiang

Greater China Logistics Market Q4 2020 5

Mainland China Premium Logistics
Market Overview by Regional Markets – Q4 2020

Existing Stock

Q4 New Supply
Future Pipeline (2021–2023)
North China
S=Total Stock (mn sq m) S: 16.3
V=Average Vacancy Rate V: 17.7%
¥=Average Asking Rent (RMB/sq m/month) ¥: 33.2
(Beijing/Tianjin/Hebei/
Shandong/Liaoning/Jilin/
Heilongjiang/Shaanx i/Shanxi)
East China
S: 29.3
V: 9.0%
¥: 38.6

(Shanghai/Jiangsu/Zhejiang/Anhui)

Central China
S: 7.5
V: 11.8%
Southw est China ¥: 28.6
S:10.0
V: 20.5% (Henan/Hubei/Hunan/Jiangxi)
¥: 27.04
(Sichuan/Chongqing/Yunnan/Guizhou)

South China
S: 8.9
V: 4.9%
¥: 40.9
Source: Cushman & Wakefield Research
(Guangdong/Fujian/Guangxi)
Greater China Logistics Market Q4 2020 6
Premium Logistics Market – Stock Breakdown
Logistics Real Estate Operator– Q4 2020

Active International Investor

First Prop
1.1% Participation
Logos GLP
1.2% Others 28.5%
Zenith Blackstone Group acquired a 70%
19.9%
1.2%
stake in the largest urban logistics park
Vailog in China's Greater Bay Area from
1.1% Guangzhou R&F Properties Co. Ltd. for
Waigaoqiao
$1.1 billion.
1.3%
Newease
1.4% Hines teamed up with Metropolitan Real
Shenzhen Estate Equity Management to acquire a
International 33,800 sq m cold chain warehousing
2.4% project in Dongguan, Guangdong.
Pingan
2.9% GLP China Value-Add Venture III: total
VX Logistic investment capacity of RMB4.5 billion
Goodman 8.0%
available to invest in Shanghai logistics
4.4% parks.
Prologis Blogis
4.4% ESR 6.5%
Mapletree CNLP
4.6% 5.2% 5.7%
Note: By Operator Holding >1% of Total Market Stock

Greater China Logistics Market Q4 2020 7

Premium Logistics Market
Major Market Logistics Dashboard – Q4 2020

Supply to 2023 GFA Vacancy Change

City Stock GFA (sq m) Rental Change (q-o-q)
(sq m) (q-o-q/pct)
Shanghai 8,638,000 2,132,000 1.5%↓ 0.7↓
Tianjin 5,971,000 3,042,000 3.9%↓ 6.3↑
Chengdu 4,559,000 1,593,000 0.3%↑ 3.7↓
Chongqing 3,550,000 698,000 1.5%↓ 1.0↑
Kunshan 2,621,000 910,000 0.3%↑ 2.0↑
Wuhan 2,609,000 1,836,000 0.7%↑ 5.7↓
Wuxi 2,478,000 347,000 0.7%↓ 8.1↑
Suzhou 2,393,000 841,000 4.8%↑ 1.7↓
Guangzhou 2,191,000 767,000 8.6%↑ 1.8↓
Hangzhou 1,969,000 872,000 1.0%↑ 3.4↓
Shenyang 1,969,000 784,000 1.4%↓ 10.6↑
Nanjing 1,942,000 219,000 6.0%↑ 10.1↓
Jiaxing 1,896,000 1,725,000 1.9%↓ 4.1↑
Beijing 1,770,000 298,000 - -
Foshan 1,484,000 1,141,000 0.7%↑ 2.6↑
Xian 1,368,000 - 0.2%↓ 5.3↑
Dalian 1,302,000 114,000 - -
Shenzhen 1,173,000 200,000 3.0%↑ 0.5↓
Qingdao 1,057,000 - 0.8%↑ 3.5↑
Nantong 914,000 916,000 3.2%↑ 1.7↓

Greater China Logistics Market Q4 2020 Source: Cushman & Wakefield Research 8
Premium Logistics Market
Stock and Future Supply (2021–2023)

Stock (million sq m) Ratio of future supply to existing stock (%)

16 160%

14 140%

12 120%

10 100%

8 80%

6 60%

4 40%

2 20%

0 0%

Greater China Logistics Market Q4 2020 *Source: Cushman & Wakefield Research 9
 Catherine Chen
MODERATOR: Director, Research
Greater China

PANELISTS: Stephen Qiu Gordon Marsden

Deputy Managing Director Regional Director
Capital Markets Capital Markets
China Asia Pacific

Joe Xiao
Director, Industrial &
Logistics Property Services
China

Please click on the Q&A icon on the top right-hand

Q&A corner of your window to submit your questions.
Greater China Logistics Market Q4 2020