READY-BUILT WAREHOUSE

Similar to ready-built factories, in areas with limited industrial land supply, high-rise warehouse models have also begun to appear to create greater storage space for the needs of e-commerce companies. Prebuilt warehouses allow companies to deliver orders faster by placing warehouses closer to consumers. The exponential growth of e-commerce has driven the demand for industrial real estate, especially warehousing models, which have grown very significantly over the past 10 years.

The ready-built warehouse market is still relatively new in the industrial real estate segment, due to the development that follows the activities of manufacturing enterprises. However, the Covid-19 pandemic has created a positive impact on the logistics market, as of Q1 2022, the supply of ready-built warehouses in all 14 provinces in the North, Central and South reached 5,245,943 m2, with a occupancy rate of about 90%.

Due to warehouse demands arising from last year's supply chain disruptions, the average tax price of ready-built warehouses has seen positive growth. In more detail, in Q1 2022, the average rental price of ready-built warehouses reached 3.4 USD/m2/month.

The positive growth in the industry has helped the momentum of supply to meet demand from domestic & international manufacturing enterprises – as domestic manufacturing enterprises have gradually used logistics services more. Similarly, the average rent is expected to have high growth in the upcoming period, due to the demand for new projects and higher standards of the business.

Contact: 0946 522 847 (Ms. Michelle) for know more information about Ready-built Warehouse.

(Source: Vietnam Industrial Park Forum 2022)