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Asia Pacific Industrial Market Overview - Colliers

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<strong>Asia</strong> <strong>Pacific</strong><br />

<strong>Industrial</strong> <strong>Market</strong> <strong>Overview</strong><br />

REGIONAL RESEARCH<br />

B I-ANNUAL UPDATE | NOVEMBER | 2008<br />

Our Knowledge is your Property


ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | NOVEMBER | 2008<br />

Contents<br />

This is the seventh issue of the <strong>Asia</strong><br />

<strong>Pacific</strong> <strong>Industrial</strong> <strong>Market</strong> <strong>Overview</strong>,<br />

which covers 12 cities in 8 countries,<br />

for the review period of April to<br />

September 2008. With this bi-annual<br />

update, we hope to provide an<br />

overview of industrial markets catering<br />

to multi-national corporations and a<br />

comparison of industrial real estate<br />

costs across the key cities of the <strong>Asia</strong><br />

<strong>Pacific</strong> region. Three types of industrial<br />

properties are tracked in this report,<br />

namely single-user factory premises,<br />

single-user warehouse premises<br />

and multi-user high-specifications<br />

industrial premises, as these are the<br />

preferred choices of multi-national<br />

corporations. This publication features<br />

land and capital values, as well as rents<br />

of single-user industrial premises; and<br />

rents of multi-user high-specification<br />

factories.<br />

Regional <strong>Overview</strong> . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3<br />

International Comparison. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-11<br />

Single-user Warehouse Land Values, Capital Values and Monthly<br />

Gross Rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4<br />

Single-user Factory Land Values, Capital Values and Monthly<br />

Gross Rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8<br />

Multi-user High-Specs Average Monthly Gross Rents . . . . . . . . . . . . . . . . . 11<br />

Local <strong>Market</strong> Norm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12-15<br />

Single-user Warehouse Land Values, Capital Values and Monthly<br />

Gross Rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12<br />

Single-user Factory Land Values, Capital Values and Monthly<br />

Gross Rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14<br />

Australia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16-19<br />

Melbourne . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16<br />

Sydney . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18<br />

China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-23<br />

Beijing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20<br />

Guangzhou . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22<br />

Shanghai . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23<br />

Hong Kong SAR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24-25<br />

India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26<br />

New Delhi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26<br />

Indonesia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27<br />

Jakarta . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27<br />

Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28<br />

Greater Tokyo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28<br />

New Zealand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29-31<br />

Auckland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29<br />

Wellington . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31<br />

Singapore . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32-33<br />

Definitions & Terminology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34<br />

2<br />

<strong>Colliers</strong> International | REGIONAL RESEARCH


ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | NOVEMBER | 2008<br />

EXECUTIVE SUMMARY<br />

Regional <strong>Overview</strong><br />

One year on, the effect of the US sub-prime mortgage crisis has finally rippled<br />

through to most industrial property markets across the <strong>Asia</strong> <strong>Pacific</strong> region<br />

during the period between April and September 2008.<br />

Growth of the industrial property markets in most <strong>Asia</strong> <strong>Pacific</strong> cities have<br />

slowed compared to the previous review period as a slowdown in major<br />

economies around the world has affected demand for exports by <strong>Asia</strong> <strong>Pacific</strong><br />

cities. This, in turn, has dampened demand for industrial premises and slowed<br />

new constructions.<br />

The uncertainties in global financial markets, tightening in credit conditions<br />

and increased costs of funding have also cooled investment sentiments in most<br />

<strong>Asia</strong> <strong>Pacific</strong> cities. As a result, acquisitions of industrial premises have dwindled<br />

in the period under review compared to the previous period. Moreover, this<br />

same set of factors has reinforced leasing as a more cost-effective option<br />

compared to owning an industrial premises. This is particularly evident in<br />

Melbourne and Sydney.<br />

Against such a backdrop, growth in land and capital values, and rents of<br />

industrial premises eased in most <strong>Asia</strong> <strong>Pacific</strong> cities during the six-month<br />

period ending September 2008 with those in some markets such as Sydney,<br />

Tokyo and Hong Kong slipping into negative territory.<br />

When measured in US Dollars, land and capital values, and rentals of<br />

industrial premises across most <strong>Asia</strong> <strong>Pacific</strong> cities showed more significant<br />

weakening. This is because in contrast to the previous review period, the<br />

US Dollar gained strength against most currencies in the <strong>Asia</strong> <strong>Pacific</strong> region<br />

during the six-month period ending September 2008. In particular, the US<br />

Dollar appreciated 15.5%, 13.9% and 12.2% against the India Rupee, the New<br />

Zealand Dollar and the Australia Dollar, respectively.<br />

With the global economy likely to enter into a protracted downturn on the<br />

back of the deepening financial crisis, the industrial property markets in<br />

the <strong>Asia</strong> <strong>Pacific</strong> region can be expected to cool further. While Melbourne,<br />

Beijing, Guangzhou, Shanghai, Delhi and Jakarta may continue to see upsides<br />

in industrial land and capital values and rents to a varying extent, those in<br />

Sydney, Hong Kong, Singapore, Tokyo, Auckland and Wellington are largely<br />

forecast to remain flat or slide in the next 12 months.<br />

<strong>Colliers</strong> International | REGIONAL RESEARCH 3


ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | NOVEMBER | 2008<br />

International Comparison<br />

The purpose of the International Comparison tables is only to facilitate easy and equal comparison of single-user industrial costs. However,<br />

payment schemes vary with each country. Some countries may have the practice of paying annual land rent, whilst others pay lump sum<br />

land premium or through other modes. <strong>Colliers</strong> International does not infer that industrial land and buildings in these cities may be acquired<br />

through the same schemes or on the basis stated in the table.<br />

single-user warehouse<br />

single-user warehouse land values, capital values and monthly gross rents<br />

city<br />

Auckland<br />

Value as of SEPTEMBER 2008<br />

(us$)<br />

land<br />

value 1<br />

(psf)<br />

capital<br />

value 2<br />

(psf)<br />

monthly<br />

gross<br />

rent<br />

(psf)<br />

12-month forecast (us$)<br />

land<br />

value 1<br />

(psf)<br />

capital<br />

value 2<br />

(psf)<br />

monthly<br />

gross<br />

rent<br />

(psf)<br />

basis of land and capital values<br />

land<br />

tenure<br />

(yEArs)<br />

plot<br />

ratio<br />

land<br />

area<br />

(sq ft)<br />

gross<br />

floor<br />

area<br />

(sq ft)<br />

Auckland 18.27 63.50 0.58 18.27 64.45 0.58 60 1.0 100,000 100,000<br />

Manukau 19.47 56.28 0.56 19.47 57.13 0.56 60 1.0 100,000 100,000<br />

North Shore 22.85 77.53 0.70 21.71 79.08 0.70 60 1.0 100,000 100,000<br />

Beijing<br />

Tianzhu 18.00 76.61 0.45 19.44 80.44 0.47 60 1.0 100,000 100,000<br />

Tongzhou 14.09 60.20 0.41 15.64 64.41 0.43 60 1.0 100,000 100,000<br />

Greater Tokyo<br />

Yokohama - Daikokufuto 14.37 149.27 1.66 14.37 149.27 1.59 60 1.0 100,000 100,000<br />

Kawasaki - Higashi Ogishima 31.95 184.28 1.85 31.95 184.28 1.70 60 1.0 100,000 100,000<br />

Tokyo - Heiwajima 115.57 280.64 2.59 115.57 280.64 2.48 60 1.0 100,000 100,000<br />

Tokyo - Ariake 110.35 213.24 1.90 110.35 213.24 1.82 60 1.0 100,000 100,000<br />

Tokyo - Shinsuna 140.69 260.76 2.16 140.69 260.76 2.07 60 1.0 100,000 100,000<br />

Chiba - Urayasu 41.51 131.28 1.30 41.51 131.28 1.22 60 1.0 100,000 100,000<br />

Chiba - Shibayama 3.32 99.51 1.26 3.32 99.51 1.18 60 1.0 100,000 100,000<br />

Guangzhou<br />

GETDD 8.89 54.62 0.38 9.07 56.57 0.39 60 1.0 100,000 100,000<br />

Hong Kong 3<br />

Ramp Access - 256.08 1.22 - 235.59 1.16 60 1.0 100,000 100,000<br />

Cargo Lift Access - 226.92 0.85 - 204.23 0.79 60 1.0 100,000 100,000<br />

Jakarta<br />

Bekasi 7.34 18.25 - 8.31 19.16 - 60 1.0 100,000 100,000<br />

Melbourne<br />

East & South East 11.99 53.40 0.47 12.59 54.03 0.48 60 1.0 100,000 100,000<br />

Fringe 36.19 113.68 0.85 36.56 114.22 0.85 60 1.0 100,000 100,000<br />

North 10.49 50.73 0.57 11.09 51.73 0.57 60 1.0 100,000 100,000<br />

West 8.99 47.11 0.39 9.47 48.03 0.39 60 1.0 100,000 100,000<br />

1. Land values are expressed as US$ per sq ft per plot ratio<br />

2. Capital values refer to the values of both land and building<br />

3. Values provided are for multi-user warehouse buildings<br />

continued on page 5<br />

4<br />

<strong>Colliers</strong> International | REGIONAL RESEARCH


ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | NOVEMBER | 2008<br />

EXECUTIVE SUMMARY<br />

International Comparison<br />

single-user warehouse<br />

single-user warehouse land values, capital values and monthly gross rents (cont’d)<br />

city<br />

New Delhi<br />

Value as of september 2008<br />

(us$)<br />

land<br />

value 1<br />

(psf)<br />

capital<br />

value 2<br />

(psf)<br />

monthly<br />

gross<br />

rent<br />

(psf)<br />

12-month forecast (us$)<br />

land<br />

value 1<br />

(psf)<br />

capital<br />

value 2<br />

(psf)<br />

monthly<br />

gross<br />

rent<br />

(psf)<br />

basis of land and capital values<br />

land<br />

tenure<br />

(years)<br />

plot<br />

ratio<br />

land<br />

area<br />

(sq ft)<br />

gross<br />

floor<br />

area<br />

(sq ft)<br />

Greater Noida 14.47 19.42 0.29 16.08 21.58 0.32 60 1.0 100,000 100,000<br />

IMT Manesar 24.12 23.74 0.40 25.73 25.18 0.45 60 1.0 100,000 100,000<br />

Noida 43.42 38.85 0.50 46.64 41.73 0.63 60 1.0 100,000 100,000<br />

Shanghai<br />

Pudong New Area 39.82 58.17 0.50 41.81 61.08 0.53 60 1.0 100,000 100,000<br />

Singapore<br />

East 39.75 115.44 1.06 35.78 103.89 0.98 60 1.0 100,000 100,000<br />

Sydney<br />

South 67.86 181.75 1.07 67.86 181.75 1.07 60 1.0 100,000 100,000<br />

Southwest 20.70 91.73 0.62 20.70 91.73 0.62 60 1.0 100,000 100,000<br />

West 31.26 152.64 0.99 31.26 152.64 0.99 60 1.0 100,000 100,000<br />

Wellington<br />

Ngauranga 14.60 54.35 0.51 14.60 54.35 0.51 60 1.0 100,000 100,000<br />

Petone 14.81 50.76 0.50 14.81 50.76 0.50 60 1.0 100,000 100,000<br />

Seaview 14.81 50.76 0.51 14.81 50.76 0.51 60 1.0 100,000 100,000<br />

1. Land values are expressed as US$ per sq ft per plot ratio<br />

2. Capital values refer to the values of both land and building<br />

<strong>Colliers</strong> International | REGIONAL RESEARCH 5


ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | NOVEMBER | 2008<br />

International Comparison<br />

international comparison of warehouse land values<br />

Greater Greater Tokyo Tokyo - - Tokyo - - Shinsuna<br />

Greater Greater Tokyo Tokyo - Tokyo - Tokyo - - Heiwajima<br />

Greater Greater Tokyo Tokyo - - Tokyo -- Ariake<br />

Sydney - South<br />

New New Delhi -- Noida<br />

Greater Greater Tokyo Tokyo - - Chiba - - Urayasu<br />

Shanghai Shanghai - - Pudong New Area<br />

Singapore - East<br />

Melbourne - Fringe<br />

Greater Tokyo Tokyo - Kawasaki - Kawasaki - Higashi - Ogishima Higashi<br />

Sydney - West<br />

New New Delhi Delhi - - IMT Manesar<br />

Auckland - - North Shore<br />

Sydney - - Southwest<br />

Auckland - - Manukau<br />

Auckland - - Auckland<br />

Beijing - - Tianzhu<br />

Wellington - - Seaview<br />

Wellington -- Petone<br />

Wellington - - Ngauranga<br />

New New Delhi Delhi - - Greater Noida<br />

Greater Greater Tokyo - Yokohama Tokyo - Yokohama - Daikokufuto -<br />

Beijing - - Tongzhou<br />

Melbourne Melbourne - East - East && South East<br />

Melbourne -- North<br />

Melbourne - West<br />

Guangzhou -- GETDD<br />

Jakarta - Bekasi<br />

Greater Greater Tokyo Tokyo - Chiba - Chiba - - Shibayama<br />

0.00<br />

0.00<br />

20.00<br />

20.00<br />

40.00<br />

40.00<br />

60.00<br />

60.00<br />

80.00<br />

80.00<br />

100.00<br />

100.00<br />

120.00<br />

120.00<br />

140.00<br />

140.00<br />

160.00<br />

160.00<br />

Warehouse Land Values (US$ psf per plot ratio)<br />

international comparison of warehouse capital values<br />

Greater Greater Tokyo Tokyo - Tokyo - Tokyo - Heiwajima<br />

- Heiwajima<br />

Greater Tokyo - Tokyo - Shinsuna<br />

Greater Tokyo *Hong - Tokyo Kong - Shinsuna<br />

- Ramp Access<br />

*Hong Kong - Ramp Access<br />

*Hong Kong - Cargo Lift Access<br />

*Hong Greater Kong Tokyo - Cargo Lift - Tokyo Access<br />

Greater Tokyo - Tokyo - Ariake<br />

- Ariake<br />

Greater Tokyo - Kawasaki - Higashi<br />

Greater Tokyo - Kawasaki - Higashi Ogishima<br />

Sydney - South<br />

Sydney Sydney - South<br />

- West<br />

Greater Tokyo - Yokohama Sydney - West<br />

Greater Tokyo - Yokohama - Daikokufuto<br />

Daikokufuto<br />

Greater Tokyo - Chiba - Urayasu<br />

Greater Tokyo - Chiba - Urayasu<br />

Singapore - East<br />

Singapore Melbourne - East<br />

- Fringe<br />

Greater Tokyo Melbourne - Chiba - Fringe<br />

Greater Tokyo - Chiba - Shibayama<br />

Sydney - Shibayama<br />

Sydney - Southwest<br />

- Southwest<br />

Auckland - North Shore<br />

Auckland - North Shore<br />

Beijing - Tianzhu<br />

Beijing - Tianzhu<br />

Auckland - Auckland<br />

Auckland Beijing - Auckland<br />

Beijing - Tongzhou<br />

- Tongzhou<br />

Shanghai - Pudong New Area<br />

Shanghai - Pudong New Area<br />

Auckland - Manukau<br />

Auckland - Manukau<br />

Guangzhou Guangzhou - GETDD<br />

Wellington Wellington - GETDD<br />

- Ngauranga - Ngauranga<br />

Melbourne - East & South East<br />

Melbourne - East & South East<br />

Wellington Wellington - Seaview- Seaview<br />

Wellington Wellington - Petone- Petone<br />

Melbourne Melbourne - North - North<br />

Melbourne Melbourne - West<br />

New New -<br />

Delhi - Delhi West<br />

Noida - Noida<br />

New New Delhi Delhi - IMT Manesar - IMT Manesar<br />

New New Delhi Delhi - Greater - Greater Noida Noida<br />

Jakarta Jakarta - Bekasi - Bekasi<br />

0.00 0.00 50.00 50.00 100.00 100.00 150.00 200.00 250.00 300.00 300.00<br />

Warehouse Capital Values (US$ psf)<br />

* Values provided are for multi-user warehouse buildings<br />

6<br />

<strong>Colliers</strong> International | REGIONAL RESEARCH


ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | NOVEMBER | 2008<br />

EXECUTIVE SUMMARY<br />

International Comparison<br />

international comparison of warehouse monthly gross rents<br />

Greater Tokyo - Tokyo - Heiwajima<br />

Greater Tokyo - Tokyo - Heiwajima<br />

Greater Greater Tokyo Greater - Tokyo Tokyo Tokyo - Shinsuna - Tokyo - Shinsuna<br />

Greater Tokyo - Tokyo - Ariake<br />

- Tokyo - Ariake<br />

Greater Tokyo - Kawasaki - Higashi Ogishima<br />

Greater Tokyo - Kawasaki - Higashi Ogishima<br />

Greater Greater Tokyo - Tokyo Yokohama - Yokohama - Daikokufuto- Daikokufuto<br />

Greater Greater Tokyo - Chiba Tokyo - Urayasu - Chiba - Urayasu<br />

Greater Tokyo - Chiba - Shibayama<br />

Greater Tokyo - Chiba - Shibayama<br />

*Hong Kong *Hong - Ramp Kong Access - Ramp Access<br />

Sydney - South<br />

Sydney - South<br />

Singapore - East Singapore - East<br />

Sydney - West Sydney - West<br />

*Hong Kong - Cargo Lift Access<br />

*Hong Kong - Cargo Lift Access<br />

Melbourne Melbourne - Fringe - Fringe<br />

Auckland Auckland - North Shore - North Shore<br />

Sydney - Southwest Sydney - Southwest<br />

Auckland - Auckland Auckland - Auckland<br />

Melbourne Melbourne - North - North<br />

Auckland - Auckland Manukau - Manukau<br />

Wellington Wellington - Seaview - Seaview<br />

Wellington Wellington - Ngauranga - Ngauranga<br />

Wellington Wellington - Petone - Petone<br />

Shanghai Shanghai - Pudong New - Pudong Area New Area<br />

New Delhi - New NoidaDelhi - Noida<br />

Melbourne Melbourne - East & South - East East& South East<br />

Beijing - Tianzhu Beijing - Tianzhu<br />

Beijing - Tongzhou Beijing - Tongzhou<br />

New Delhi New - IMT Delhi Manesar - IMT Manesar<br />

Melbourne Melbourne - West - West<br />

Guangzhou Guangzhou - GETDD - GETDD<br />

New Delhi New - Greater Delhi Noida - Greater Noida<br />

0.00 0.00 0.50 0.50 1.00 1.00 1.50 1.50 2.00 2.00 2.50 3.00 3.00<br />

Warehouse Monthly Gross Rents (US$ psf)<br />

* Values provided are for multi-user warehouse buildings<br />

<strong>Colliers</strong> International | REGIONAL RESEARCH 7


ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | NOVEMBER | 2008<br />

International Comparison<br />

single-user factory<br />

single-user factory land values, capital values and monthly gross rents<br />

city<br />

Beijing<br />

Value as of september 2008<br />

(us$)<br />

land<br />

value 1<br />

(psf)<br />

capital<br />

value 2<br />

(psf)<br />

monthly<br />

gross<br />

rent<br />

(psf)<br />

12-month forecast (us$)<br />

land<br />

value 1<br />

(psf)<br />

capital<br />

value 2<br />

(psf)<br />

monthly<br />

gross<br />

rent<br />

(psf)<br />

basis of land and capital values<br />

land<br />

tenure<br />

(years)<br />

plot<br />

ratio<br />

land<br />

area<br />

(sq ft)<br />

gross<br />

floor<br />

area<br />

(sq ft)<br />

Shang Di 41.71 126.96 1.23 46.30 135.85 1.23 60 1.0 100,000 100,000<br />

Yi Zhuang 6.58 59.35 0.75 6.72 60.54 0.78 60 1.0 100,000 100,000<br />

Greater Tokyo<br />

Tokyo - Ota 59.27 117.33 - 59.27 117.33 - 60 1.0 100,000 100,000<br />

Yokohama - Naka 31.19 100.30 - 31.19 100.30 - 60 1.0 100,000 100,000<br />

Chiba - Ichikawa 32.40 114.26 - 32.40 114.26 - 60 1.0 100,000 100,000<br />

Chiba - Mihama 15.27 69.76 - 15.27 69.76 - 60 1.0 100,000 100,000<br />

Saitama - Ageo 12.11 66.47 - 12.11 66.47 - 60 1.0 100,000 100,000<br />

Guangzhou<br />

GETDD 8.89 57.09 0.49 9.07 58.23 0.49 60 1.0 100,000 100,000<br />

Hong Kong 3<br />

Low Quality - 167.15 0.84 - 147.09 0.76 60 1.0 100,000 100,000<br />

Mid Quality - 213.37 1.03 - 187.77 0.93 60 1.0 100,000 100,000<br />

Prime Quality - 340.96 1.31 - 300.04 1.18 60 1.0 100,000 100,000<br />

Jakarta<br />

Bekasi 7.41 22.68 - 8.31 23.81 - 60 1.0 100,000 100,000<br />

Karawang 5.14 20.47 0.34 5.71 21.50 0.35 60 1.0 100,000 100,000<br />

Melbourne<br />

East & South East 11.99 53.40 0.47 12.59 54.03 0.48 60 1.0 100,000 100,000<br />

Fringe 36.19 113.68 0.85 36.56 114.22 0.85 60 1.0 100,000 100,000<br />

North 10.49 50.73 0.57 11.09 51.73 0.57 60 1.0 100,000 100,000<br />

West 8.99 47.11 0.39 9.47 48.03 0.39 60 1.0 100,000 100,000<br />

New Delhi<br />

Greater Noida 18.28 30.12 0.38 21.33 32.44 0.42 60 1.0 100,000 100,000<br />

Gurgaon 106.65 120.49 0.95 114.26 126.66 1.05 60 1.0 100,000 100,000<br />

IMT Manesar 22.85 33.98 0.48 24.38 36.30 0.61 60 1.0 100,000 100,000<br />

Noida 56.37 72.60 0.57 60.94 77.23 0.63 60 1.0 100,000 100,000<br />

Okhla 167.59 169.91 1.33 182.82 179.18 1.33 60 1.0 100,000 100,000<br />

Shanghai<br />

Minhang District 15.63 53.81 0.35 16.41 56.50 0.36 60 1.0 100,000 100,000<br />

Pudong New Area 17.78 48.77 0.35 18.67 51.21 0.37 60 1.0 100,000 100,000<br />

Singapore<br />

Central 55.76 125.14 1.10 50.18 112.63 1.02 60 1.0 100,000 100,000<br />

1. Land values are expressed as US$ per sq ft per plot ratio<br />

2. Capital values refer to the values of both land and building<br />

3. Values provided are for multi-user factory buildings<br />

8<br />

<strong>Colliers</strong> International | REGIONAL RESEARCH


ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | NOVEMBER | 2008<br />

EXECUTIVE SUMMARY<br />

International Comparison<br />

international comparison of FACTORY LAND VALUES<br />

New Delhi - Okhla<br />

New Delhi - Okhla<br />

New Delhi - Gurgaon<br />

New Delhi - Gurgaon<br />

Greater Tokyo - Tokyo - Ota<br />

Greater Tokyo - Tokyo - Ota<br />

New Delhi - Noida<br />

New Delhi - Noida<br />

Singapore - Central<br />

Singapore - Central<br />

Beijing - Shang Di<br />

Beijing - Shang Di<br />

Melbourne - Fringe<br />

Melbourne - Fringe<br />

Greater Tokyo - Chiba - Ichikawa<br />

Greater Tokyo - Chiba - Ichikawa<br />

Greater Tokyo - Yokohama - Naka<br />

Greater Tokyo - Yokohama - Naka<br />

New Delhi - IMT Manesar<br />

New Delhi - IMT Manesar<br />

New Delhi - Greater Noida<br />

New Delhi - Greater Noida<br />

Shanghai - Pudong New Area<br />

Shanghai - Pudong New Area<br />

Shanghai - Minhang District<br />

Shanghai - Minhang District<br />

Greater Tokyo - Chiba - Mihama<br />

Greater Tokyo - Chiba - Mihama<br />

Greater Greater Tokyo - Tokyo Saitama -- Ageo Saitama - Ageo<br />

Melbourne Melbourne - East & South - East East & South East<br />

Melbourne Melbourne - North - North<br />

Melbourne Melbourne - West - West<br />

Guangzhou Guangzhou - GETDD - GETDD<br />

Jakarta - Bekasi Jakarta - Bekasi<br />

Beijing - Yi Beijing Zhuang - Yi Zhuang<br />

Jakarta - Karawang Jakarta - Karawang<br />

0.00 0.00 20.00 20.00 40.00 40.00 60.00 60.00 80.00 80.00 100.00 100.00 120.00 140.00 160.00 180.00 180.00<br />

Factory Land Values (US$ psf per plot ratio)<br />

international comparison of FACTORY CAPITAL VALUES<br />

*Hong Kong - Prime Quality<br />

*Hong Kong - Prime Quality<br />

*Hong Kong - Mid Quality<br />

*Hong Kong - Mid New Quality<br />

Delhi - Okhla<br />

New Delhi - Okhla<br />

*Hong Kong - Low Quality<br />

*Hong Kong - Low Quality<br />

Beijing - Shang Di<br />

Beijing - Shang Di<br />

Singapore - Central<br />

Singapore New - Central<br />

Delhi - Gurgaon<br />

Greater<br />

New Delhi Tokyo - Gurgaon<br />

- Tokyo - Ota<br />

Greater Tokyo - Tokyo - Ota<br />

Greater Tokyo - Chiba - Ichikawa<br />

Greater Tokyo - Chiba - Melbourne Ichikawa<br />

Melbourne - Fringe - Fringe<br />

Greater Tokyo - Yokohama - Naka<br />

Greater Tokyo - Yokohama - Naka<br />

New Delhi New - Noida Delhi - Noida<br />

Greater Greater Tokyo - Tokyo Chiba - Mihama - Chiba - Mihama<br />

Greater Greater Tokyo - Tokyo Saitama -- Ageo Saitama - Ageo<br />

Beijing - Yi Beijing Zhuang - Yi Zhuang<br />

Guangzhou Guangzhou - GETDD - GETDD<br />

Shanghai Shanghai - Minhang - District Minhang District<br />

Melbourne Melbourne - East & South - East East & South East<br />

Melbourne Melbourne - North - North<br />

Shanghai Shanghai - Pudong - New Pudong Area New Area<br />

Melbourne Melbourne - West - West<br />

New Delhi New - IMT Delhi Manesar - IMT Manesar<br />

New Delhi New - Greater Delhi Noida - Greater Noida<br />

Jakarta - Bekasi Jakarta - Bekasi<br />

Jakarta - Karawang Jakarta - Karawang<br />

0.00 0.00 50.00 50.00 100.00 100.00 150.00 150.00 200.00 200.00 250.00 300.00 350.00 400.00<br />

Factory Capital Values (US$ psf)<br />

* Values provided are for multi-user factory buildings<br />

<strong>Colliers</strong> International | REGIONAL RESEARCH 9


ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | NOVEMBER | 2008<br />

International Comparison<br />

international comparison of FACTORY MONTHLY GROSS RENTS<br />

New Delhi New - Okhla Delhi - Okhla<br />

*Hong *Hong Kong - Kong Prime Quality - Prime Quality<br />

Beijing - Beijing Shang Di - Shang Di<br />

Singapore Singapore - Central - Central<br />

*Hong *Hong Kong - Kong Mid Quality - Mid Quality<br />

New Delhi New - Gurgaon Delhi - Gurgaon<br />

Melbourne Melbourne - Fringe - Fringe<br />

*Hong *Hong Kong - Kong Low Quality - Low Quality<br />

Beijing - Beijing Yi Zhuang - Yi Zhuang<br />

New Delhi New - Noida Delhi - Noida<br />

Melbourne Melbourne - North - North<br />

Guangzhou Guangzhou - GETDD - GETDD<br />

New New Delhi - Delhi IMT Manesar - IMT Manesar<br />

Melbourne - East &- South East East & South East<br />

Melbourne Melbourne - West - West<br />

New New Delhi - Delhi Greater - Noida Greater Noida<br />

Shanghai - Pudong - Pudong New Area New Area<br />

Shanghai Shanghai - Minhang - Minhang District District<br />

Jakarta - Jakarta Karawang- Karawang<br />

0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40<br />

0.00 0.20 0.40 0.60 0.80 1.00 1.40<br />

Factory Monthly Gross Rents (US$ psf)<br />

* Values provided are for multi-user factory buildings<br />

10<br />

<strong>Colliers</strong> International | REGIONAL RESEARCH


ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | NOVEMBER | 2008<br />

EXECUTIVE SUMMARY<br />

International Comparison<br />

MULTI-USER HIgh-SPECS<br />

MULTI-USER HIgh-SPECS AVERAGE monthly gross rents<br />

CITY<br />

aS OF september<br />

2008<br />

AVERAGE MONTHlY<br />

GROSS RENT<br />

(US$ psf)<br />

12-MONTH FORECAST<br />

AVERAGE MONTHLY<br />

GROSS RENT<br />

(US$ PSF)<br />

LEASE<br />

TERM<br />

(years)<br />

BASIS OF RENTAL RATES<br />

LOCATION NET FLOOR<br />

AREA<br />

(sq ft)<br />

Auckland 0.80 0.80 3 Suburban 10,000 1<br />

Beijing 1.30 1.45 3 Suburban 10,000 1<br />

Hong Kong 2.24 1.98 3 Suburban 10,000 1<br />

Melbourne 1.33 1.34 3 Suburban 10,000 1<br />

RENT free<br />

peRIOD<br />

(month)<br />

New Delhi - Gurgaon 1.12 1.16 3 to 9 Suburban 10,000 Negotiable<br />

New Delhi - Noida 0.47 0.53 3 to 9 Suburban 10,000 Negotiable<br />

Shanghai 1.10 1.16 3 Suburban 10,000 1<br />

Singapore 2.48 2.23 3 Suburban 10,000 1<br />

Sydney 0.93 0.93 3 Suburban 10,000 1<br />

Greater Tokyo - Kanagawa Science Park 4.91 4.67 3 Suburban 10,000 1<br />

Greater Tokyo - Yokohama Business Park 3.45 3.28 3 Suburban 10,000 1<br />

Greater Tokyo - Hakusan Hi-Tech Park 3.86 3.67 3 Suburban 10,000 1<br />

Wellington 0.57 0.57 3 Suburban 10,000 1<br />

international comparison of high-specs MONTHLY GROSS RENTS<br />

Greater Tokyo - Kanagawa Science Park<br />

Greater Tokyo - Kanagawa Science Park<br />

Greater Tokyo - Hakusan Hi-Tech Park<br />

Greater Tokyo - Hakusan Hi-Tech Park<br />

Greater Tokyo - Yokohama Business Park<br />

Greater Tokyo - Yokohama Business Park<br />

Singapore<br />

Singapore<br />

Hong Kong<br />

Melbourne<br />

Beijing<br />

Hong Kong<br />

Melbourne<br />

Beijing<br />

New Delhi - New Gurgaon Delhi - Gurgaon<br />

Shanghai<br />

Shanghai<br />

Sydney<br />

Sydney<br />

Auckland<br />

Auckland<br />

Wellington<br />

Wellington<br />

New Delhi - Noida<br />

New Delhi - Noida<br />

0.00 1.00 2.00 3.00 4.00 5.00 6.00<br />

0.00 1.00 2.00 3.00 4.00 5.00 6.00<br />

High-Specs Average Monthly Gross Rents (US$ psf)<br />

<strong>Colliers</strong> International | REGIONAL RESEARCH 11


ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | NOVEMBER | 2008<br />

Local <strong>Market</strong> Norm<br />

The purpose of the Local <strong>Market</strong> Norm tables is only to provide an understanding of single-user industrial costs in the context of the various<br />

submarkets. The land tenure, plot ratio, land and building size quoted are based on recent offerings and transactions in each local market.<br />

However, payment schemes vary with each country. Some countries may have the practice of paying annual land rent, whilst others pay<br />

lump sum land premium or through other modes. <strong>Colliers</strong> International does not infer that industrial land and buildings in these cities may<br />

be acquired through the same schemes.<br />

single-user warehouse<br />

single-user warehouse land values, capital values and monthly gross rents 1<br />

city<br />

Auckland<br />

Local<br />

currency<br />

In local currency as of<br />

september 2008<br />

land<br />

value 2<br />

(psf)<br />

capital<br />

value 3<br />

(psf)<br />

monthly<br />

rent<br />

(psf)<br />

in us$ as of september 2008<br />

land<br />

value 2<br />

(psf)<br />

capital<br />

value 3<br />

(psf)<br />

monthly<br />

rent<br />

(psf)<br />

basis of land, capital values<br />

and monthly gross rents<br />

(local market norm)<br />

land<br />

tenure<br />

(years)<br />

plot<br />

ratio<br />

land<br />

area<br />

(sq ft)<br />

gross<br />

floor<br />

area<br />

(sq ft)<br />

Auckland NZ$ 36.75 143.44 1.00 25.03 97.68 0.68 Freehold 0.5 30,000 15,000<br />

Manukau NZ$ 34.45 118.07 0.91 23.46 80.41 0.62 Freehold 0.5 100,000 50,000<br />

North Shore NZ$ 40.43 151.79 1.08 27.53 103.37 0.74 Freehold 0.5 105,000 52,500<br />

Beijing<br />

Tianzhu CNY 110.83 489.39 3.07 16.21 71.60 0.45 50 0.7 150,000 105,000<br />

Tongzhou CNY 89.18 384.55 2.80 13.05 56.26 0.41 50 0.9 120,000 108,000<br />

Greater Tokyo<br />

Yokohama -<br />

Daikokufuto<br />

Kawasaki - Higashi<br />

Ogishima<br />

JPY 2,113 15,050 141.00 19.96 142.16 1.33 Freehold 4.0 107,639 430,556<br />

JPY 3,253 15,607 135.00 30.72 147.43 1.27 Freehold 3.0 1,076,390 3,229,170<br />

Tokyo - Heiwajima JPY 10,732 22,854 183.00 101.38 215.88 1.73 Freehold 3.0 1,614,585 4,843,755<br />

Tokyo - Ariake JPY 15,372 25,083 183.00 145.20 236.94 1.73 Freehold 2.0 107,639 215,278<br />

Tokyo - Shinsuna JPY 17,732 26,291 183.00 167.49 248.35 1.73 Freehold 2.0 215,278 430,556<br />

Chiba - Urayasu JPY 6,463 17,373 138.00 61.05 164.10 1.30 Freehold 2.0 53,820 107,640<br />

Chiba - Shibayama JPY 418 10,033 107.00 3.95 94.78 1.01 Freehold 2.0 215,278 430,556<br />

Guangzhou<br />

GETDD CNY 57.35 319.12 2.36 8.39 46.69 0.35 50 1.5 150,000 225,000<br />

Hong Kong 4<br />

Ramp Access HK$ - 1,989.72 9.50 - 256.08 1.22 N.A. N.A. N.A. N.A.<br />

Cargo Lift Access HK$ - 1,763.19 6.64 - 226.92 0.85 N.A. N.A. N.A. N.A.<br />

Jakarta<br />

Bekasi Rp 61,608 140,749 - 6.49 14.83 - 30 2.4 10,000 24,000<br />

1. Values and rents may not be quoted in $ psf in local market practice<br />

2. Land values are expressed as per sq ft per plot ratio<br />

3. Capital values refer to the values of both land and building<br />

4. Values provided are for multi-user warehouse buildings<br />

continued on page 13<br />

12<br />

<strong>Colliers</strong> International | REGIONAL RESEARCH


ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | NOVEMBER | 2008<br />

EXECUTIVE SUMMARY<br />

Local <strong>Market</strong> Norm<br />

single-user warehouse<br />

single-user warehouse land values, capital values and monthly gross rents 1 (cont’d)<br />

city<br />

Melbourne<br />

Local<br />

currency<br />

in local currency as of<br />

september 2008<br />

land<br />

value 2<br />

(psf)<br />

capital<br />

value 3<br />

(psf)<br />

monthly<br />

rent<br />

(psf)<br />

in us$ as of september 2008<br />

land<br />

value 2<br />

(psf)<br />

capital<br />

value 3<br />

(psf)<br />

monthly<br />

rent<br />

(psf)<br />

basis of land, capital values<br />

and monthly gross rents<br />

(local market norm)<br />

land<br />

tenure<br />

(years)<br />

plot<br />

ratio<br />

land<br />

area<br />

(sq ft)<br />

gross<br />

floor<br />

area<br />

(sq ft)<br />

East & South East A$ 20.00 92.90 0.63 16.42 76.28 0.52 Freehold 0.6 40,000 24,000<br />

Fringe A$ 60.39 213.00 1.21 49.59 174.89 0.99 Freehold 0.6 30,000 18,000<br />

North A$ 17.50 88.26 0.77 14.37 72.47 0.63 Freehold 0.6 40,000 24,000<br />

West A$ 15.00 88.26 0.55 12.32 72.47 0.45 Freehold 0.6 30,000 18,000<br />

New Delhi<br />

Greater Noida Rs 900 1,350 16.00 19.04 28.57 0.34 99 0.6 25,000 15,000<br />

IMT Manesar Rs 1,500 1,650 22.00 31.74 34.91 0.47 99 0.6 30,000 18,000<br />

Noida Rs 2,700 2,700 28.00 57.13 57.13 0.59 99 0.6 30,000 18,000<br />

Shanghai<br />

Pudong New Area CNY 243.00 371.61 3.43 35.55 54.37 0.50 50 0.6 150,000 90,000<br />

Singapore<br />

East S$ 60.61 150.00 1.38 40.56 100.38 0.92 30+30 2.0 150,000 300,000<br />

Sydney<br />

South A$ 95.00 233.00 1.13 78.00 191.32 0.93 Freehold 1.2 220,000 264,000<br />

Southwest A$ 35.50 148.94 0.80 29.15 122.29 0.66 Freehold 1.2 60,000 72,000<br />

West A$ 40.50 169.00 0.92 33.25 138.77 0.76 Freehold 1.2 430,000 516,000<br />

Wellington<br />

Ngauranga NZ$ 28.58 114.02 0.83 19.46 77.65 0.57 Freehold 0.5 70,000 35,000<br />

Petone NZ$ 26.20 106.49 0.82 17.84 72.52 0.56 Freehold 0.5 100,000 50,000<br />

Seaview NZ$ 26.20 106.49 0.83 17.84 72.52 0.57 Freehold 0.5 100,000 50,000<br />

1. Values and rents may not be quoted in $ psf in local market practice<br />

2. Land values are expressed as per sq ft per plot ratio<br />

3. Capital values refer to the values of both land and building<br />

<strong>Colliers</strong> International | REGIONAL RESEARCH 13


ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | NOVEMBER | 2008<br />

Local <strong>Market</strong> Norm<br />

single-user factory<br />

single-user factory land values, capital values and monthly gross rents 1<br />

city<br />

Beijing<br />

Local<br />

currency<br />

in local currency as of<br />

september 2008<br />

land<br />

value 2<br />

(psf)<br />

capital<br />

value 3<br />

(psf)<br />

monthly<br />

rent<br />

(psf)<br />

in us$ as of september 2008<br />

land<br />

value 2<br />

(psf)<br />

capital<br />

value 3<br />

(psf)<br />

monthly<br />

rent<br />

(psf)<br />

basis of land, capital values<br />

and monthly gross rents<br />

(local market norm)<br />

land<br />

tenure<br />

(years)<br />

plot<br />

ratio<br />

land<br />

area<br />

(sq ft)<br />

gross<br />

floor<br />

area<br />

(sq ft)<br />

Shang Di CNY 240.58 657.43 6.75 35.20 96.18 0.99 50 1.1 390,000 429,000<br />

Yi Zhuang CNY 47.12 397.73 5.37 6.89 58.19 0.79 50 1.3 42,000 54,600<br />

Greater Tokyo<br />

Tokyo - Ota JPY 10,286 17,744 - 97.16 167.61 - Freehold 2.0 16,146 32,292<br />

Yokohama - Naka JPY 4,345 11,798 - 41.04 111.45 - Freehold 2.0 107,634 215,268<br />

Chiba - Ichikawa JPY 4,084 11,520 - 38.58 108.82 - Freehold 2.0 215,278 430,556<br />

Chiba - Mihama JPY 2,449 9,848 - 23.13 93.02 - Freehold 2.0 32,292 64,584<br />

Saitama - Ageo JPY 1,942 9,383 - 18.35 88.63 - Freehold 2.0 32,292 64,584<br />

Guangzhou<br />

GETDD CNY 57.35 333.50 3.05 8.39 48.79 0.45 50 1.5 150,000 225,000<br />

Hong Kong 4<br />

Low Quality HK$ - 1,298.74 6.53 - 167.15 0.84 N.A. N.A. N.A. N.A.<br />

Mid Range HK$ - 1,657.90 8.03 - 213.37 1.03 N.A. N.A. N.A. N.A.<br />

Prime Quality HK$ - 2,649.26 10.19 - 340.96 1.31 N.A. N.A. N.A. N.A.<br />

Jakarta<br />

Bekasi Rp 62,212 174,950 - 6.56 18.44 - 30 2.4 15,000 36,000<br />

Karawang Rp 40,653 140,749 3,100.00 4.28 14.83 0.33 30 2.4 70,000 168,000<br />

Melbourne<br />

East & South East A$ 20.00 92.90 0.63 16.42 76.28 0.52 Freehold 0.6 40,000 24,000<br />

Fringe A$ 60.39 213.00 1.21 49.59 174.89 0.99 Freehold 0.6 30,000 18,000<br />

North A$ 17.50 88.26 0.77 14.37 72.47 0.63 Freehold 0.6 40,000 24,000<br />

West A$ 15.00 88.26 0.55 12.32 72.47 0.45 Freehold 0.6 30,000 18,000<br />

New Delhi<br />

Greater Noida Rs 1,200 1,950 20.00 25.39 41.26 0.42 99 1.25 25,000 31,250<br />

Gurgaon Rs 7,000 7,800 50.00 148.12 165.05 1.06 99 1.25 30,000 37,500<br />

IMT Manesar Rs 1,500 2,200 25.00 31.74 46.55 0.53 99 1.25 30,000 37,500<br />

Noida Rs 3,700 4,700 30.00 78.29 99.45 0.63 99 1.25 30,000 37,500<br />

Okhla Rs 11,000 11,000 70.00 232.76 232.76 1.48 99 1.25 25,000 31,250<br />

1. Values and rents may not be quoted in $ psf in local market practice<br />

2. Land values are expressed as per sq ft per plot ratio<br />

3. Capital values refer to the values of both land and building<br />

4. Values provided are for multi-user factory buildings<br />

continued on page 15<br />

14<br />

<strong>Colliers</strong> International | REGIONAL RESEARCH


ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | NOVEMBER | 2008<br />

EXECUTIVE SUMMARY<br />

Local <strong>Market</strong> Norm<br />

single-user factory<br />

single-user factory land values, capital values and monthly gross rents 1 (cont’d)<br />

city<br />

Shanghai<br />

Local<br />

currency<br />

in local currency as of<br />

september 2008<br />

land<br />

value 2<br />

(psf)<br />

capital<br />

value 3<br />

(psf)<br />

monthly<br />

rent<br />

(psf)<br />

in us$ as of september 2008<br />

land<br />

value 2<br />

(psf)<br />

capital<br />

value 3<br />

(psf)<br />

monthly<br />

rent<br />

(psf)<br />

basis of land, capital values<br />

and monthly gross rents<br />

(local market norm)<br />

land<br />

tenure<br />

(years)<br />

plot<br />

ratio<br />

land<br />

area<br />

(sq ft)<br />

gross<br />

floor<br />

area<br />

(sq ft)<br />

Minhang District CNY 98.00 343.74 2.37 14.34 50.29 0.35 50 1 150,000 150,000<br />

Pudong New Area CNY 111.50 362.32 2.80 16.31 53.01 0.41 50 1 150,000 150,000<br />

Singapore<br />

Central S$ 87.71 170.00 1.49 58.70 113.76 1.00 30 + 30 2.5 100,000 250,000<br />

1. Values and rents may not be quoted in $ psf in local market practice<br />

2. Land values are expressed as per sq ft per plot ratio<br />

3. Capital values refer to the values of both land and building<br />

<strong>Colliers</strong> International | REGIONAL RESEARCH 15


ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | NOVEMBER | 2008<br />

Australia<br />

economic indicators for melbourne<br />

Economic indicators<br />

indicators period data<br />

Year-on-Year GDP Growth April - September 2008 3.0%<br />

Year-on-Year Manufacturing Output Growth Rate February - July 2008 -0.3%<br />

Total Imports February - July 2008 A$29.1 billion<br />

Total Exports February - July 2008 A$10.7 billion<br />

Container Throughput (TEUs) April - September 2008 n.a.<br />

Air Cargo Throughput (Tonnes) April - September 2008 n.a.<br />

*n.a. denotes not available<br />

MELBOURNE<br />

Factory and Warehouse<br />

`` Melbourne’s industrial market was steady between April and<br />

September 2008 on the back of a 3.0% year-on-year (YoY)<br />

expansion in the economy of the state of Victoria along with<br />

modest growth of 1.2% and 1.1% YoY in total imports and<br />

exports, respectively, during the six-month period between<br />

February and July 2008.<br />

``<br />

``<br />

Overall, Melbourne’s industrial rents and incentives were<br />

stable during the April to September 2008 period with the<br />

exception of prime grade properties in Melbourne’s City<br />

Fringe which experienced a marginal increase in rental to<br />

between A$1.12 and A$1.35 per sq ft for building with net<br />

lettable area ranging between 5,380 to 16,150 sq ft. Average<br />

yields across Melbourne have increased to around 8.2% from<br />

approximately 6.5% for the same period last year.<br />

Major sales transactions in the period under review include<br />

151 Barry Road, Campbellfield which was sold to an<br />

undisclosed purchaser for A$13 million in April 2008 and<br />

49 Temple Drive and 2 Keon Parade, Thomastown to Prime<br />

West for A$18 million in June 2008.<br />

``<br />

``<br />

The continued demand and a shortage of supply for prime<br />

industrial buildings have resulted in the planning, construction<br />

and recent completion of buildings at an estimated 9.1 million<br />

sq ft across Melbourne. Melbourne’s West accounts for the<br />

greatest proportion of this total, comprising 3.7 million sq ft,<br />

followed by the Melbourne’s North at 1.7 million sq ft, the<br />

City Fringe with 1.7 million sq ft, the South East with 1.0<br />

million sq ft and the East approximately 893,400 sq ft.<br />

The cut in the official cash rate by a full 100 basis points in<br />

October 2008 and the anticipation of further cuts is expected<br />

to stimulate activity in Melbourne’s industrial property<br />

market, particularly for the smaller-end market (under 10,760<br />

sq ft). Moreover, private investors may also be presented with<br />

better buying opportunities as a result of forced sales and<br />

vendors being compelled to meet the market. On the supply<br />

side, the next 12 months will see new stock coming on line.<br />

With all of these factors considered, industrial rents, capital<br />

and land values are expected to stay stable over the next 12<br />

months.<br />

16<br />

<strong>Colliers</strong> International | REGIONAL RESEARCH


ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | NOVEMBER | 2008<br />

EXECUTIVE SUMMARY<br />

Australia<br />

AUSTRALIA<br />

major transactions in melbourne<br />

transactions<br />

building / land plot property type Lease / Sale tenant / purchaser<br />

floor / land<br />

area (sq ft)<br />

15 Thackray Road, Port Melbourne Warehouse Lease Godfreys 64,584<br />

7 to 21 Leakes Road, Laverton North Warehouse Lease Encore Tissue Pty Ltd 129,168<br />

445 to 469 Grieve Parade, Altona North Warehouse Lease The Reject Shop 217,949<br />

Skye Road East, Tullamarine Warehouse Lease Agility Pty Ltd 129,168<br />

82 Taryn Drive, Epping Warehouse Lease The Stanley Works 113,452<br />

163 to 179 Forster Road, Mt Waverley Warehouse Lease Chrisco Group 212,922<br />

151 Barry Road, Campbellfield Warehouse Sale Undisclosed 264,310<br />

49 Temple Drive and 2 Keon Parade, Thomastown Warehouse Sale Prime West 285,920<br />

186 to 206 Dougharty Road, West Heidelberg Warehouse Sale Banco Group 159,200<br />

<strong>Colliers</strong> International | REGIONAL RESEARCH 17


ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | NOVEMBER | 2008<br />

Australia<br />

economic indicators for SYDNEY<br />

economic indicators<br />

indicators period data<br />

Year-on-Year GDP Growth April - September 2008 1.9%<br />

Year-on-Year Manufacturing Output Growth Rate April - September 2008 n.a.<br />

Total Imports April - September 2008 A$86.4 billion<br />

Total Exports April - September 2008 A$30.8 billion<br />

Container Throughput (TEUs) April - September 2008 n.a.<br />

Air Cargo Throughput (Tonnes) April - September 2008 n.a.<br />

SYDNEY<br />

Factory, Warehouse and High-Specs<br />

`` Investor demand cooled further between April and September<br />

2008 as a result of the ongoing global credit crisis, volatility<br />

in the Listed Property <strong>Market</strong> (LPT) as well as rising funding<br />

and construction costs. However, these same factors have<br />

boosted demand in the leasing market as users find it more<br />

cost-effective to lease rather than own industrial space.<br />

``<br />

``<br />

<strong>Industrial</strong> land and capital values as well as rents were<br />

unchanged from six months ago mainly as a result of limited<br />

transactions on the back of the global credit crunch and<br />

current financial market instability, as well as increased stock<br />

levels in some markets.<br />

Major transactions which took place amidst the cautious<br />

investor market due to the financial market meltdown include<br />

the sale of a 785,765-sq ft building in Clunies Ross Street,<br />

Greystanes to Deka for a price of A$54 million; a 799,004-sq<br />

ft building in Contaplas Street, Arndell Park to GMG for<br />

A$52 million; a 128,090-sq ft building at 372 Eastern Valley<br />

Way in Chatswood to Charter Hall for A$29 million, and a<br />

``<br />

``<br />

471,459-sq ft building on Williamson Road, Ingleburn to Tap<br />

Ingleburn 3 Pty Ltd for A$25 million.<br />

The majority of developments that are currently underway<br />

are located in Sydney’s west in areas such as Erskine Park and<br />

Eastern Creek, where a large amount of speculative supply is<br />

expected to enter the market over the coming six months.<br />

However, whilst activity in the pre-commitment market is<br />

expected to continue going forward, the number of speculative<br />

developments is set to decline due to the increase in funding<br />

and construction costs.<br />

The instability in the global financial markets and continuing<br />

volatility in the LPT sector is expected to continue into the<br />

next 12 months. As such, land and capital values as well<br />

as face rents are forecast to soften slightly over the next 12<br />

months. While yields have continued to soften through the<br />

first half of 2008 by approximately 75 to 100 basis points, they<br />

might increase slightly into the first half of 2009 as users turn<br />

their preference towards leasing rather than owning.<br />

18<br />

<strong>Colliers</strong> International | REGIONAL RESEARCH


ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | NOVEMBER | 2008<br />

EXECUTIVE SUMMARY<br />

Australia<br />

major transactions in SYDNEY<br />

transactions<br />

building / land plot property type Lease / Sale tenant / purchaser<br />

floor / land<br />

area (sq ft)<br />

Templar Road, Erskine Park Warehouse Lease Goodman Fielder 561,876<br />

1 to 5 Manchester Road, Auburn Warehouse Lease HDG Properties Pty Ltd 429,910<br />

Helles Avenue, Moorebank Warehouse Lease Toll Holdings 294,931<br />

474 to 536 Mamre Road, Erskine Park Warehouse Lease Kagan Warehousing & Distribution 135,765<br />

5 Contaplas Street, Arndell Park Warehouse Sale GMG 799,004<br />

Clunies Ross Street, Greystanes Warehouse Sale Deka 785,765<br />

12 Williamson Road, Ingleburn Warehouse Sale Tap Ingleburn 3 Pty Ltd 471,459<br />

140 Denison St, Hilldale Warehouse Sale Mirvac Projects 279,861<br />

90 to 96 Bourke Road, Alexandria Warehouse Sale Salt Holdings Budtale Pty Ltd 158,046<br />

372 Eastern Valley Way, Chatswood Warehouse Sale Charter Hall 128,090<br />

139 to 143 Parramatta Rd, Camperdown Warehouse Sale Primefeeling Pty Limited 106,444<br />

<strong>Colliers</strong> International | REGIONAL RESEARCH 19


ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | NOVEMBER | 2008<br />

China<br />

economic indicators for beijing<br />

ECONOMIC INDICATORS<br />

indicators period data<br />

Year-on-Year GDP Growth January - June 2008 11.0%<br />

Year-on-Year Manufacturing Output Growth Rate January - July 2008 8.3%<br />

Total Imports January - July 2008 CNY888.3 billion<br />

Total Exports January - July 2008 CNY224.1 billion<br />

Container Throughput (TEUs) January - July 2008 n.a.<br />

Air Cargo Throughput (Tonnes) January - May 2008 540,000<br />

BEIJING<br />

Factory and Warehouse<br />

`` Beijing’s economy continued to expand in 1H 2008, by<br />

11.0% YoY despite a slowing world economy. Manufacturing<br />

output increased by 8.3% YoY in 1H 2008 although the rate<br />

of growth has slowed by 5.9 percentage points over the same<br />

period in 2007, primarily as a result of temporary closure of<br />

factories for two months for the Beijing Olympic Games held<br />

in August 2008. Fixed asset investments, too, climbed by<br />

9.3% YoY to CNY191.3 billion during the first seven months<br />

of 2008.<br />

``<br />

``<br />

Against the above backdrop, rents and sale prices for<br />

industrial premises generally trended up during the sixmonth<br />

period between April and September 2008 with land<br />

values in Tongzhou growing the fastest at 28.1% on the back<br />

of an active land sales market. A total of 22 land transactions<br />

took place in the Tongzhou, Shunyi and Yi Zhuang areas<br />

during this six-month period with China Resources Logistic’s<br />

and Boustead Weiye Logistic’s purchase of 614,037-sq ft<br />

and 309,494-sq ft land parcels, respectively, for warehouse<br />

development in Beijing Tongzhou Logistics Park counting as<br />

major land acquisitions.<br />

Driven by the strong demand from a wide range of industrial<br />

sectors, including automobile, electronic devices, sports,<br />

``<br />

``<br />

clothes and fast moving consumer goods, capital values of<br />

warehouses in Tongzhou and Tianzhu rose by an average of<br />

6.0% while those of factories in Shangdi and Yi Zhuang saw<br />

increases between 2.0% and 7.0% during the period of review.<br />

Significant transactions included AMB’s acquisition of three<br />

buildings with total floor area of 306,000-sq ft in Beijng<br />

Airport Logistics Park.<br />

Rental growths were milder, hovering in the range of 0% and<br />

3.0% during the period of review although leasing demand<br />

for industrial properties remained healthy with deals such<br />

as the leasing of more than 1 million sq ft at Prologistics<br />

warehouse by the 2008 Olympics Organising Committee for<br />

the Olympics fixed distribution base.<br />

Overall, the outlook for the industrial market is positive with<br />

continued investment from investors and developers and<br />

the local government initiatives. Land and capital values,<br />

and rents of industrial space are expected to see an average<br />

increase of up to 11.0%, 6.0% and 4.0%, respectively, in the<br />

next 12 months. Rents of high-specs space could rise by a<br />

faster 11.0% as Beijing continues to attract more companies<br />

carrying out research and development activities.<br />

20<br />

<strong>Colliers</strong> International | REGIONAL RESEARCH


ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | NOVEMBER | 2008<br />

EXECUTIVE SUMMARY<br />

China<br />

major transactions in BEIJING<br />

transactions<br />

building / land plot property type Lease / Sale tenant / purchaser<br />

floor / land<br />

area (sq ft)<br />

Yinghai Building Warehouse Lease Suning Appliance 26,372<br />

Beijing Airport Economic Industry Park Warehouse Lease Veatas 118,403<br />

Austar warehouse Warehouse Lease Nippon Express 32,292<br />

Beijing Airport Logistic Park Warehouse Lease 2008 Olympics Organising Committee 1,076,390<br />

Beijing Airport Logistic Park Taijer warehouse Warehouse Lease State-owned enterprise 89,340<br />

Beijing Airport Logistic Park Taijer warehouse Warehouse Lease KWE n.a.<br />

Beijing Zhongguancun Area Land Sale Microsoft 61,182<br />

Beijing Zhongguancun Area Land Sale Microsoft 64,713<br />

Beijing Tongzhou Logistic Park Land Sale China Resources Logistic 614,037<br />

Beijing Tongzhou Logistic Park Land Sale Boustead Weiye Logistic 309,494<br />

Beijing Airport Logistic Park Land Sale Mapletree 106,326<br />

Beijing Airport Logistic Park Warehouse Sale AMB 306,000<br />

<strong>Colliers</strong> International | REGIONAL RESEARCH 21


ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | NOVEMBER | 2008<br />

China<br />

economic indicators for guangzhou<br />

ECONOMIC INDICATORS<br />

indicators period data<br />

Year-on-Year GDP Growth January - July 2008 11.9%<br />

Year-on-Year Manufacturing Output Growth Rate January - Aug 2008 12.9%<br />

Total Imports April - July 2008 CNY14.0 billion<br />

Total Exports April - July 2008 CNY15.0 billion<br />

Container Throughput (TEUs) April - July 2008 4.4 million<br />

Air Cargo Throughput (Tonnes) April - July 2008 317,000<br />

GUANGZHOU<br />

Factory and Warehouse<br />

`` The current uncertainty in the global financial markets<br />

is causing some foreign companies to adopt a wait-andsee<br />

approach before deciding on their expansion plans.<br />

Nonetheless, leading logistics companies such as UPS, FedEx<br />

and Nippon Express are continuing to expand their business<br />

operations in Southern China, leading to higher demand for<br />

logistics space.<br />

back of robust demand from industrialists. The majority of the<br />

purchasers are local corporations. Notable land transactions<br />

concluded in the period of review include Wuhan Iron and<br />

Steel (Group) Corporation and HEDY Holding Co., Ltd’s (an<br />

electronic product manufacturer) acquisitions of 227,730-sq<br />

ft and 124,455-sq ft land parcels, respectively, in Guangzhou<br />

Science City.<br />

``<br />

``<br />

This led to rents and capital values for warehouses rising faster<br />

than factories. Average rents for warehouses edged up 1.7%<br />

between April and September 2008 while capital values rose<br />

by 2.5% during the same period. In comparison, the average<br />

rents and capital values for factory space saw smaller rises of<br />

1.0% and 0.7%, respectively, in the same time period.<br />

Compared to rents and capital values, land values rose at a<br />

faster pace of 4.8% between April and September 2008 on the<br />

``<br />

Moving forward, the R&F Group’s likely launch of Phase II of<br />

the International Aviation Integrated Logistics Park in Huadu<br />

District by the end of 2008 should generate a healthy level<br />

of interest and contribute to market activity. Average land<br />

and capital values as well as rents of industrial properties are<br />

forecast to nudge up by 2.0%, 3.0% and 2.0%, respectively,<br />

over the next 12 months.<br />

major transactions in guangzhou<br />

transactions<br />

building / land plot property type Lease / Sale tenant / purchaser<br />

floor / land<br />

area (sq ft)<br />

Development Zone/JGQ-A-5 Land Sale Lianzhong Stainless Steel Corporation 151,205<br />

Guangzhou Science City/KXC-N1-3 Land Sale Wuhan Iron and Steel (Group) Corporation 227,730<br />

Guangzhou Science City/KXC-J1-2 Land Sale HEDY Holding Co., Ltd 124,455<br />

Guangzhou Science City/KXCN-C1-2-5 Land Sale GRG Banking Co., Ltd 94,782<br />

Guangzhou Science City/KXC-I4-3 Land Sale Two Information Technology Co. Ltd 192,071<br />

22<br />

<strong>Colliers</strong> International | REGIONAL RESEARCH


ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | NOVEMBER | 2008<br />

EXECUTIVE SUMMARY<br />

China<br />

economic indicators for shanghai<br />

ECONOMIC INDICATORS<br />

indicators period data<br />

Year-on-Year GDP Growth January - June 2008 10.3%<br />

Year-on-Year Manufacturing Output Growth Rate January - July 2008 15.3%<br />

Total Imports January - July 2008 CNY6,295.3 billion<br />

Total Exports January - July 2008 CNY6,602.9 billion<br />

Container Throughput (TEUs) January - July 2008 1.6 million<br />

Air Cargo Throughput (Tonnes) January - July 2008 1.8 million<br />

SHANGHAI<br />

Factory and Warehouse<br />

`` Shanghai’s industrial property market slackened amidst the<br />

slow down in external and domestic demand as evidenced<br />

by the easing back to single-digit growth for gross industrial<br />

output in recent months. The continuous appreciation of the<br />

Chinese Yuan and the claw back in export tax rebate have<br />

also hit exports and resulted in the moderation of growth in<br />

container throughput from 23.0% in January to July 2007 to<br />

9.0% in January to July 2008.<br />

``<br />

``<br />

New supply is on the decline due to the strict control of<br />

land supply. Main completions of industrial properties in the<br />

period of review include the opening of GE’s 693,901-sq ft<br />

China Technology Park (CTP) in Zhangjiang Hi-Tech Park.<br />

ILOG also opened its office building with a gross floor area<br />

(GFA) of 24,757-sq ft in Zhangjiang.<br />

With the decline in new supply and more cautious demand,<br />

rents and capital values of factories and warehouses saw only<br />

moderate growth of between 2.6% and 5.9 % in the April to<br />

``<br />

``<br />

September 2008 review period. Land prices recorded a slightly<br />

higher average increase of 6.4% due to the strict control of<br />

land supply.<br />

In the land sales market, a total of 39 plots of industrial lands<br />

was sold between April and June 2008, 11 plots less than that<br />

sold in the same period in 2007. In August 2008, Hong Kongbased<br />

Oriental Sheet Piling Co., Ltd, a wholly owned unit<br />

of the top steelmaker ArcelorMittal, purchased a plot with a<br />

gross floor area of 358,815-sq ft in Baoshan <strong>Industrial</strong> Park to<br />

produce, process and repair sheet piling and other cold-rolled<br />

products.<br />

Looking forward, the average rental of industrial space is<br />

expected to see a moderate increase of 5.0% in the next 12<br />

months amidst the quiet market. On the sales front, average<br />

capital value is forecast to rise steadily on the back of the<br />

expected continued increase in industrial land prices due to<br />

the strict control of land supply.<br />

major transactions in SHANGHAI<br />

transactions<br />

building / land plot property type Lease / Sale tenant / purchaser<br />

floor / land<br />

area (sq ft)<br />

Caohejing Hi-Tech Park Factory Lease Keda Group n.a.<br />

Jinqiao Export Processing Zone Warehouse Lease Cummins(China)Investment Co.,Ltd Shanghai<br />

Branch<br />

Waigaoqiao Free Trade Zone Warehouse Lease 3M 16,146<br />

Baoshan <strong>Industrial</strong> Park Factory Sale Oriental Sheet Piling Co., Ltd 358,815<br />

43,056<br />

<strong>Colliers</strong> International | REGIONAL RESEARCH 23


ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | NOVEMBER | 2008<br />

Hong Kong SAR<br />

economic indicators for hong kong SAR<br />

ECONOMIC INDICATORS<br />

indicators period data<br />

Year-on-Year GDP Growth January - June 2008 5.8%<br />

Year-on-Year Manufacturing Output Growth Rate March - August 2008 -13.3%<br />

Total Imports March - August 2008 HK$1,569.0 billion<br />

Total Exports March - August 2008 HK$1,441.0 billion<br />

Container Throughput (TEUs) March - August 2008 12.6 million<br />

Air Cargo Throughput (Tonnes) March - August 2008 1.9 million<br />

HONG KONG SAR<br />

Factory<br />

`` Tightening credit as well as global economic slowdown have<br />

dampened Hong Kong’s external trade during the latter half<br />

of the six-month period ended August 2008. Overall, the<br />

value of Hong Kong’s re-exports grew 8.2% YoY during the<br />

period, slowing from the 9.9% YoY growth registered in the<br />

preceding six-month period.<br />

``<br />

``<br />

Recent deterioration in the external environment has led to<br />

waning demand for factories, resulting in a tapering off in the<br />

growth of rents and capital values in the latter half of the<br />

six-month period ending August 2008. The average rents for<br />

factories rose by 3.1% to HK$8.33 per sq ft during this period,<br />

down from the 4.5% increase recorded during the preceding<br />

six-month period. Capital values experienced a more<br />

significant slowdown in growth, from 19.3% in the preceding<br />

six-month to 8.2% in the March to August 2008 period.<br />

While genuine end-users remained keen in acquiring suitable<br />

industrial units for occupational purpose over the long term,<br />

their buying decisions have been delayed due to the general<br />

rise in funding costs as well as growing uncertainties in the<br />

external environment.<br />

Investors, too, have turned cautious given the uncertainty<br />

in rental growth over the near-to-medium term. As a result,<br />

the industrial investment market turned quiet during the<br />

period from March to August 2008, and the number of sale<br />

transactions declined 30.2% compared with the preceding sixmonth<br />

period, to 2,511. The major investment transaction<br />

during the six months between March and August 2008 was<br />

the sale of the whole block of Angel Tower in Cheung Sha<br />

Wan to an industrial company in August 2008 for HK$285<br />

million (or HK$3,265 per sq ft).<br />

``<br />

Looking ahead, the worsening financial turmoil and the<br />

potential consolidation of the global economy is likely to<br />

weigh on Hong Kong’s industrial property market as growth<br />

of re-exports and the overall volume of logistics throughput in<br />

Hong Kong might slow further. If the external environment<br />

deteriorates, industrial rents and capital values could decline<br />

by some 12.0% on average in the next 12 months.<br />

Warehouse<br />

`` Third-party logistics companies continued to look for quality<br />

warehousing premises in order to meet the growing demand<br />

from industrialists who have chosen to outsource their<br />

logistics functions amid rising fuel and operating costs during<br />

the six-month period ending August 2008.<br />

``<br />

``<br />

The sustained demand for quality warehouse premises<br />

supported the rental performance of warehouse premises.<br />

The average rents of warehouses with cargo lift access edged<br />

up by 2.0% to HK$6.64 per sq ft per month while those for<br />

warehouses with ramp access edged up by a marginally higher<br />

2.6% to HK$9.50 per sq ft during the six-month period ended<br />

in August 2008. Capital values of the former increased by<br />

4.9% during the same time period to HK$1,763 per sq ft while<br />

those for the latter increased by a faster 7.9% to HK$1,990<br />

per sq ft.<br />

The warehouse market is expected to continue to weather<br />

the financial storm better than the factory market. As such,<br />

rents for warehouses with ramp access and cargo lift access<br />

are forecast to see a milder decline of up to 5.0% and 7.0%,<br />

respectively, in the next 12 months compared to those for<br />

factory premises. Capital values, on the other hand, are<br />

forecast to decline by 8.0% for warehouses with ramp access<br />

and a bigger drop of 10.0% for those with cargo lift access<br />

over the same time period.<br />

24<br />

<strong>Colliers</strong> International | REGIONAL RESEARCH


ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | NOVEMBER | 2008<br />

EXECUTIVE SUMMARY<br />

Hong Kong SAR<br />

High-Specs <strong>Industrial</strong> Building<br />

`` Keen competition between high-specs <strong>Industrial</strong>-Office<br />

buildings (I-O) and traditional office buildings helped to<br />

keep I-O rents in check. During the six-month period ended<br />

August 2008, average I-O rents edged up 3.4% to HK$17.44<br />

per sq ft per month.<br />

``<br />

Large office supply in the pipeline in decentralised districts,<br />

coupled with an expected easing of demand if the external<br />

environment deteriorates, will likely result in a significant<br />

12.0% downward adjustment in I-O rentals in the next 12<br />

months.<br />

major transactions in HONG KONG SAR<br />

transactions<br />

building / land plot property type Lease / Sale tenant / purchaser<br />

floor / land<br />

area (sq ft)<br />

Cosmos Shing Building Factory Sale Local developer 110,000<br />

Tak Fu <strong>Industrial</strong> Building Factory Sale Local developer n.a.<br />

Lemmi Centre Factory Sale Local investor n.a.<br />

Sunnex Products Ltd Factory Sale Local developer 17,760<br />

Angel Tower Factory Sale An industrialist 87,300<br />

<strong>Colliers</strong> International | REGIONAL RESEARCH 25


ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | NOVEMBER | 2008<br />

India<br />

economic indicators for INDIA<br />

ECONOMIC INDICATORS<br />

indicators period data<br />

Year-on-Year GDP Growth April - June 2008 9.3%<br />

Year-on-Year Manufacturing Output Growth Rate April - June 2008 9.2%<br />

Total Imports April - July 2008 Rs4,215.4 billion<br />

Total Exports April - September 2008 Rs2,485.0 billion<br />

Container Throughput (TEUs) April - September 2008 n.a.<br />

Air Cargo Throughput (Tonnes) April - September 2008 n.a.<br />

NEW DELHI<br />

Factory and Warehouse<br />

`` The United States (US)-India nuclear deal was signed in<br />

September 2008. This bodes well for India as the expected<br />

improvements in the infrastructure and manufacturing base<br />

in the various sectors such as pharmaceuticals and computer<br />

hardware will propel India into a more competitive trading<br />

nation.<br />

``<br />

Due to scarcity of land and their high prices in the industrial<br />

areas like Okhla and Gurgaon (Udyog Vihar), new areas<br />

such as Jharsa, Pataudi Road, Tawdu, Dharuhera on NH-8<br />

(outskirts of Gurgaon) and Kundali, Sonipat and Panipat on<br />

NH-1 are emerging as new micro-markets for industrial and<br />

logistic activities. Companies are shifting towards these new<br />

emerging locations which offer more affordable business space<br />

options and this has helped to keep the industrial market (in<br />

established industrial estates like Okhla, Gurgaon, Noida,<br />

Greater Noida and IMT Manesar) stable from April to<br />

September 2008. Land values and capital values of industrial<br />

space have remained flat in the review period while rents<br />

``<br />

``<br />

of industrial space have crept up approximately by 1.0% on<br />

average in the last six months.<br />

Hexagon Metrology, a Swedish manufacturing company of<br />

measurement technology products, has set up coordinated<br />

measuring machines assembly and manufacturing operations<br />

in Noida with an investment of approximately Rs200 million.<br />

The new facility will initially have a capacity to produce 50<br />

to 60 machines a year and will be ramped up to 250 to 300<br />

machines in 2009.<br />

The Delhi NCR is expected to see a continual demand from<br />

industrialists in the next 12 months as the State continues its<br />

industrialisation path for economic growth. Land values and<br />

capital values of industrial space could see an average increase<br />

of approximately 9.0% and 7.0%, respectively, while average<br />

rents is expected to rise by a bigger margin of 12.0% to 13.0%<br />

in the next 12 months.<br />

major transactions in new delhi<br />

transactions<br />

building / land plot property type Lease / Sale tenant / purchaser<br />

floor / land<br />

area (sq ft)<br />

Pataudi Road Warehouse Lease IVOK Tyres 70,000<br />

Pataudi Road Warehouse Lease Reliance 100,000<br />

Pataudi Road Warehouse Lease Gati 150,000<br />

Pataudi Road Warehouse Lease MYK Logistics 165,000<br />

Pataudi Road Warehouse Lease DHL Exel 170,000<br />

26<br />

<strong>Colliers</strong> International | REGIONAL RESEARCH


ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | NOVEMBER | 2008<br />

EXECUTIVE SUMMARY<br />

Indonesia<br />

economic indicators for jakarta<br />

ECONOMIC INDICATORS<br />

indicators period data<br />

Year-on-Year GDP Growth April - June 2008 6.4%<br />

Year-on-Year Manufacturing Output Growth Rate April - June 2008 1.1%<br />

Total Imports January - July 2008 US$77.9 billion<br />

Total Exports January - July 2008 US$83.0 billion<br />

Container Throughput (TEUs) January - July 2008 861,469<br />

Air Cargo Throughput (Tonnes) April - September 2008 n.a.<br />

JAKARTA<br />

Factory and Warehouse<br />

`` The recent power shortage has affected manufacturing<br />

operations in industrial estates which draw on power supply<br />

from the state-owned electricity company, PLN. This has<br />

resulted in some demand for industrial space being diverted<br />

to industrial estates, such as those in Bekasi, which draw<br />

power supply from private electricity companies.<br />

``<br />

Transactions during the period of review include the<br />

acquisition of a 538,195-sq ft land parcel in Krakatau<br />

<strong>Industrial</strong> Estate Cilegon by a food processing company. A<br />

company in the steel industry who is relocating from China<br />

also purchased a 538,195-sq ft land parcel in Modern Cikande<br />

during the period of review.<br />

``<br />

The diversion in demand has resulted in the average land<br />

prices in Bekasi rising by a faster 2.5% compared to the 1.0%<br />

growth recorded in Karawang in the period under review.<br />

In addition, demand from logistic-related companies, new<br />

setups, food and beverages companies and auto-related<br />

industries, and increase in land tax also contributed to the<br />

increase in land prices during the period of review. Capital<br />

values and rents of industrial space edged up moderately by<br />

1.0% and 3.0%, respectively, from April to September 2008<br />

due to slow take-up.<br />

``<br />

Given the slow take-up in the existing industrial estates, the<br />

Indonesian Government will be issuing a regulation which<br />

impels new investments to be within the existing industrial<br />

estates. With the new regulation, take-up of industrial space<br />

within the existing industrial estates is expected to increase.<br />

Land values could see an increase of up to 13.0%. As<br />

industrialists in Indonesia generally prefer to own rather than<br />

lease, capital values are expected to rise by 5.0% in the next<br />

12 months whilst rents are forecast to stay flat.<br />

major transactions in JAKARTA<br />

transactions<br />

building / land plot property type Lease / Sale tenant / purchaser<br />

floor / land<br />

area (sq ft)<br />

Krakatau <strong>Industrial</strong> Estate Cilegon Land Sale Food processing company 538,195<br />

Moden Cikande Land Sale Chemical industry company 129,167<br />

Modern Cikande Land Sale Company in steel industry from China 538,195<br />

Karawang <strong>Industrial</strong> International City Land Sale Coil centre company from Japan 538,195<br />

<strong>Colliers</strong> International | REGIONAL RESEARCH 27


ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | NOVEMBER | 2008<br />

Japan<br />

economic indicators for greater tokyo<br />

ECONOMIC INDICATORS<br />

indicators period data<br />

Year-on-Year GDP Growth January - June 2008 1.1%<br />

Year-on-Year Manufacturing Output Growth Rate January - June 2008 2.0%<br />

Total Imports January - June 2008 JPY16,244.1 billion<br />

Total Exports January - June 2008 JPY15,124.8 billion<br />

Container Throughput (TEUs) January - June 2008 3.7 million<br />

Air Cargo Throughput (Tonnes) January - June 2008 1.1 million<br />

GREATER TOKYO<br />

Factory and Warehouse<br />

`` The Japanese economy has been affected by the US sub-prime<br />

mortgage crisis, rising energy and material costs, declining<br />

consumption and falling exports. The real gross domestic<br />

product (GDP) growth rate declined by 0.7% on a quarteron-quarter<br />

(QoQ) basis in 2Q 2008 (-3.0% annualised),<br />

along with decreases in most sectors.<br />

``<br />

``<br />

In general, rents of industrial facilities were flat whilst<br />

industrial land values saw a rise of 4.5% on average in greater<br />

Tokyo because of demand for facilities located in waterfront<br />

areas and with proximity to highways.<br />

On a nationwide basis, sales activities in the industrial sector<br />

have been slow from the beginning of 2008, due to the credit<br />

crunch and the expectation of further falls in prices. Despite<br />

the credit crunch, Japan Logistics Fund (JREIT) acquired two<br />

logistics facilities in Urayasu and Ichikawa in Chiba with<br />

total net lettable area of 66,659-sq ft and 201,136-sq ft for<br />

JPY1.6 billion and JPY4.6 billion, respectively, in the survey<br />

period.<br />

``<br />

``<br />

Three major logistics facilities were completed during the first<br />

half of 2008. They are Prologis Park Narita III, a six-storey<br />

multi-tenanted building located 900 metres from Narita<br />

Airport with a ground floor area of 836,247-sq ft, Logistation<br />

Higashi Ogishima, a four-storey multi-tenanted building with<br />

a ground floor area of 482,718-sq ft in Kawasaki, and Logiport<br />

Kwasaki, a warehouse with a ground floor area of 1.7<br />

million sq ft in Kawasaki.<br />

<strong>Industrial</strong> land and capital values, which have been increasing<br />

over the past 12 months, are expected to plateau in the next<br />

12 months. Rents for warehouses and high-specs facilities,<br />

on the other hand, are expected to decline by up to 6.0%<br />

and 5.0% on average, respectively, in the next 12 months.<br />

Increased construction activities in the past year from the<br />

major logistics developers have not been matched by demand,<br />

thus resulting in an oversupply of warehouse space and rising<br />

vacancy rates in the Greater Tokyo, Nagoya and Osaka areas.<br />

New supply of high-specs space is expected to increase in the<br />

Yokohama area from 2009 to 2011 and will put downward<br />

pressure on rents of existing high-specs buildings in this<br />

area.<br />

major transactions in GREATER TOKYO<br />

transactions<br />

building / land plot property type Lease / Sale tenant / purchaser<br />

floor / land<br />

area (sq ft)<br />

CRE Logistics Square Kazo Warehouse Sale Mitsui & Co. Realty Management Ltd. 281,023<br />

Toda Park Logistics Centre Warehouse Sale Orix JREIT Inc. 389,208<br />

Ichikawa Logistics Centre Warehouse Sale Japan Logistics Fund, Inc. 201,136<br />

Urayasu Chidori Logistics Centre Warehouse Sale Japan Logistics Fund, Inc. 66,659<br />

28<br />

<strong>Colliers</strong> International | REGIONAL RESEARCH


ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | NOVEMBER | 2008<br />

EXECUTIVE SUMMARY<br />

New Zealand<br />

economic indicators for new zealand<br />

ECONOMIC INDICATORS<br />

indicators period data<br />

Year-on-Year GDP Growth June 2008 2.6%<br />

Year-on-Year Manufacturing Output Growth Rate June 2008 7.6%<br />

Total Imports January - June 2008 NZ$21.8 billion<br />

Total Exports January - June 2008 NZ$21.7 billion<br />

Container Throughput (TEUs) January - March 2008 11.1 million<br />

Air Cargo Throughput (Tonnes) January - March 2008 50,621<br />

AUCKLAND<br />

Office / Warehouse<br />

`` Auckland’s industrial market was robust during the period of<br />

review with the overall vacancy rate standing at 4.0% as at<br />

June 2008, down 30 basis points from 12 months ago.<br />

``<br />

``<br />

Auckland’s industrial market continues to be influenced by<br />

land availability and affordability. Land supply in Auckland<br />

city and North Shore city are reaching critically low levels,<br />

driving cost of prime land to new benchmarks. Sales evidence<br />

shows that developers have been willing to pay over NZ$100<br />

per sq ft for land in Wairau Valley on the North Shore,<br />

particularly where showroom or retail components can be<br />

incorporated, and are expected to pay NZ$60 per sq ft for<br />

land in Mt Wellington. However, in general, developers’<br />

affordability continues to put a cap on land prices, resulting<br />

in them remaining unchanged from March 2008’s levels.<br />

Capital values of industrial properties were stable in the<br />

North Shore but recorded declines of 10.0% on average<br />

in Auckland and Manukau during the period from April<br />

to September 2008. This was in spite of the large number<br />

of sales transactions which took place during this period,<br />

including the sale of the Tapper Transport facility consisting<br />

of a 65,800-sq ft warehouse and a 29,400-sq ft canopy at<br />

373A Neilson Street, Onehunga to Goodman Property<br />

Trust for NZ$10.15 million, representing a yield of 7.8%.<br />

Another notable transaction was the sale of a high quality<br />

modern industrial space comprising a 109,000-sq ft high stud<br />

warehouse and 11,900-sq ft office, with a further 26,700-sq ft<br />

of land for future expansion at 9 Ride Way, Albany to ING<br />

Property Trust for NZ$17 million reflecting an initial yield<br />

of 8.4%.<br />

``<br />

``<br />

``<br />

Rental growth remained relatively static over the review<br />

period. Leasing deals successfully contracted between April<br />

and September 2008 include Spring Chicken taking up a sixyear<br />

lease for 23,200-sq ft of a newly refurbished industrial<br />

premises at 23 Kitchener Road, Waiuku for NZ$190,000 per<br />

annum and Redeal securing 11,500-sq ft of industrial space<br />

with 25 car parks at Unit A, 525 Great South Road, Penrose for<br />

NZ$283,730 per annum for five years. Additionally, Downer<br />

EDI Works has committed to 37,100-sq ft of industrial space<br />

at No.56 to 60 Carbine Road, Mt Wellington for NZ$389,639<br />

per annum on an eight-year lease.<br />

A number of design-build industrial premises were completed<br />

during the review period at Highbrook Business Park, East<br />

Tamaki. Major completions include 118,400-sq ft of industrial<br />

space for digital imaging and printing services provider GEON<br />

Group, 110,900-sq ft premises for Contract Logistics and<br />

269,100-sq ft for office production company OfficeMax.<br />

Tighter credit conditions as a result of the global financial<br />

crisis are expected to impact on development activities<br />

and purchases of industrial space over the next 12 months.<br />

Rents, capital and land values are generally expected to stay<br />

flat during this time period although land values for North<br />

Shore are currently at a peak and we might see up to 5.0%<br />

decline over the next 12 months as land for industrial usage is<br />

becoming less economically viable and developers struggle to<br />

keep up with high construction and land costs.<br />

<strong>Colliers</strong> International | REGIONAL RESEARCH 29


ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | NOVEMBER | 2008<br />

New Zealand<br />

major transactions in AUCKLAND<br />

transactions<br />

building / land plot property type Lease / Sale tenant / purchaser<br />

floor / land<br />

area (sq ft)<br />

25 Fairfax Avenue, Penrose Office/Warehouse Lease JA Russell 10,800<br />

30 Ascot Road, Mangere Office/Warehouse Lease Fomula E Gokarts 38,400<br />

56 to 60 Carbine Road, Mt Wellington Office/Warehouse Lease Downer EDI Works 37,100<br />

59 to 63 Druces Road, Manukau Office/Warehouse Lease NZ Chemical Care & Storage 26,600<br />

23 Kitchener Road, Waiuku Office/Warehouse Lease Spring Chicken 23,200<br />

118 Hugo Johnston Drive, Penrose Office/Warehouse Lease Reid & Twiname 34,700<br />

Cnr Southpark Place & Hugo Johnston Drive, Penrose Office/Warehouse Lease BJ Ball 118,400<br />

Tenancy 1, 18 Clemow Lane, Mt Wellington Office/Warehouse Lease Fresh Direct 37,900<br />

Unit A, 525 Great South Road Office/Warehouse Lease Redeal 11,500<br />

2 <strong>Pacific</strong> Rise, Mt Wellington Office/Warehouse Sale Direct Property 29,700<br />

24 Dalgety Drive, Wiri Office/Warehouse Sale Hunua Holdings 30,200<br />

373A Neilson Street, Onehunga Office/Warehouse Sale Goodman Property Trust 65,800<br />

9 Ride Way, Albany Office/Warehouse Sale ING Property Trust 120,900<br />

84 Kerrs Road, Manukau Office/Warehouse Sale Lorne Investment or Nominee 38,400<br />

567 Don Buck Road, Massey Office/Warehouse Sale Bunnings 104,800<br />

13 Ha Crescent, Wiri Office/Warehouse Sale Private Investor 54,100<br />

74 to 76 Leonard Road, Penrose Office/Warehouse Sale Owner Occupier 29,100<br />

30<br />

<strong>Colliers</strong> International | REGIONAL RESEARCH


ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | NOVEMBER | 2008<br />

EXECUTIVE SUMMARY<br />

New Zealand<br />

WELLINGTON<br />

Office / Warehouse<br />

`` Continued constraints on industrial land supply in Wellington<br />

have limited development opportunities in prime industrial<br />

locations. As a result, developers’ focus has shifted to small<br />

industrial units in the secondary market, targeting smaller<br />

scale investors and owner-occupiers.<br />

``<br />

``<br />

In the investment market, demand for investment grade<br />

stock continued. Major sales during the review period include<br />

a 91,100-sq ft industrial complex on a 1.5-hectare site located<br />

at 1 Prosser Street, Porirua sold by Prop International for<br />

NZ$5.2 million and leased back to Pierlite New Zealand on a<br />

one-year term with an option to renew for another five years,<br />

returning an annual income of approximately NZ$500,000.<br />

G&M Ballentyne bought two industrial buildings located at 3<br />

Parumoana Street and 5 Jellicoe Street in Porirua for NZ$4.5<br />

million or a combined yield of 4.8% from Trust Porirua.<br />

Firethorn Investments bought a 49,500-sq ft industrial<br />

building at 9b Peterkin Street, Lower Hutt from Wingate Two<br />

for NZ$4.3 million, reflecting a yield of 7.8%.<br />

While the leasing market remained relatively active during<br />

the review period, rents stayed flat for the past six months.<br />

``<br />

``<br />

Some leasing transactions in the review period include an<br />

11,700-sq ft industrial property at 15 Jarden Mile, Ngauranga<br />

leased to Vidcom NZ Ltd on a five-year lease with an annual<br />

rental of NZ$205,000, a lease by Fusion Interiors for 19,600-<br />

sq ft of office and warehouse space with six car parks at 1<br />

to 13 Lower Tyers Road, Ngauranga on a six-year lease at<br />

NZ$180,000 per annum, and City Care committing to an<br />

11,800-sq ft office and warehouse space at 6 Hurring Place,<br />

Ngauranga on a five-year initial term for NZ$165,000 a year.<br />

As the financial uncertainty stemming from the US takes<br />

its toll on new construction in the industrial market in<br />

Wellington, most developers are choosing to wait for<br />

substantial tenant pre-commitment before commencing<br />

construction. Consequently, there was no new industrial<br />

development added to the supply pipeline during the review<br />

period.<br />

Slow economic growth together with an unsettled financial<br />

market will result in little movement in land, rents and<br />

capital values in the Wellington industrial sector in the next<br />

12 months.<br />

major transactions in WELLINGTON<br />

transactions<br />

building / land plot property type Lease / Sale tenant / purchaser<br />

floor / land<br />

area (sq ft)<br />

6 Hurring Place, Ngauranga Office/Warehouse Lease City Care 11,800<br />

Unit 5, 21 to 29 Bell Road South, Lower Hutt Office/Warehouse Lease Transport Accident Investigation Commission 11,700<br />

1 to 13 Lower Tyers Road, Ngauranga Office/Warehouse Lease Fusion Interiors 19,600<br />

15 Jarden Mile, Ngauranga Office/Warehouse Lease Vidcom NZ 11,700<br />

84 to 92 Adelaide Road, Newtown Warehouse/Storage Sale Storage King 68,300<br />

3 Parumoana Street & 5 Jellicoe Street, Porirua Office/Warehouse Sale G&M Ballentyne 18,500<br />

4 Centennial Highway, Ngauranga Office/Warehouse Sale Padora Properties 21,700<br />

1 Prosser Street, Porirua Office/Warehouse Sale Pierlite New Zealand 91,100<br />

9b Peterkin Street, Lower Hutt Office/Warehouse Sale Firethorn Investments 49,500<br />

65 to 67 Port Road, Seaview Office/Warehouse Sale An investment syndicate 34,500<br />

Kings Wharf Cold Store, Centreport Cold Store Sale Taylor Preston 89,200<br />

23 to 25 Hooper Street, Mount Cook Office/Warehouse Sale Egley Properties 11,200<br />

188 Kapiti Road, Paraparaumu Office/Warehouse Sale Owner Occupier 17,500<br />

131 Gracefield Road, Lower Hutt Office/Warehouse Sale Family Trust 26,700<br />

<strong>Colliers</strong> International | REGIONAL RESEARCH 31


ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | NOVEMBER | 2008<br />

Singapore<br />

economic indicators for SINGAPORE<br />

ECONOMIC INDICATORS<br />

indicators period data<br />

Year-on-Year GDP Growth January - June 2008 4.5%<br />

Year-on-Year Manufacturing Output Growth Rate January - June 2008 3.6%<br />

Total Imports January - June 2008 S$228.4 billion<br />

Total Exports January - June 2008 S$243.5 billion<br />

Container Throughput (TEUs) April - September 2008 15.6 million<br />

Air Cargo Throughput (Tonnes) February - July 2008 950,776<br />

SINGAPORE<br />

Factory and Warehouse<br />

`` Singapore became the first country in <strong>Asia</strong> to enter into<br />

a technical recession due to the ongoing financial crisis.<br />

According to advance estimates from the Ministry of Trade<br />

and Industry, Singapore’s economy contracted for the second<br />

consecutive quarter in 3Q 2008 by 6.3% annualised on a<br />

QoQ basis following an annualised 5.7% QoQ contraction in<br />

2Q 2008. The manufacturing sector, too, contracted for two<br />

consecutive quarters, by 4.9% and 11.5% on a YoY basis in 2Q<br />

2008 and 3Q 2008 respectively. The 3-month moving average<br />

(3MMA) growth in non-oil domestic exports (NODX) has<br />

been trending downwards since May, registering its steepest<br />

decline of 10.0% in August 2008.<br />

``<br />

The slowdown in economy, manufacturing sector and NODX<br />

have resulted in demand for industrial space easing in the<br />

latter half of the six-month period ending September 2008.<br />

Consequently, industrial rents and capital values of industrial<br />

space recorded markedly lower growth of 6.3% and 6.7%,<br />

respectively, in this review period, compared to the double<br />

digit growth seen in the previous review period from October<br />

2007 to March 2008.<br />

``<br />

S$42 million in September 2008.<br />

In view of the expected deterioration in the global economy,<br />

including that of Singapore, demand for industrial space is<br />

likely to continue to ease in the next 12 months. Capital<br />

values of industrial space and land values might decline by<br />

10.0% in the next 12 months, while rents of industrial space<br />

might see a more moderate decline of up to 5.0%.<br />

High-Specs <strong>Industrial</strong> Building<br />

`` While demand by qualifying office users continued to spill<br />

over to the high-specs industrial space market, this has been<br />

tapering off in the latter half of the six-month period ending<br />

September 2008 due to a slowing office market and increased<br />

availability of alternative business premises/locations for<br />

office users.<br />

``<br />

As a result, average rents of high-specs industrial space inched<br />

up by a marginal 1.6% between April and September 2008,<br />

down significantly from the 31.9% growth recorded for the<br />

last review period.<br />

``<br />

``<br />

Major completions of industrial space during the six-month<br />

period ending September 2008 include CWT Commodity<br />

Hub by CWT Limited in Penjuru, partial completion of<br />

Seagate Building at Woodlands, and Pioneer Hub by A-REIT<br />

in Tuas.<br />

The uncertainty in global financial markets and the difficulty<br />

in raising financing due to the tight credit market have resulted<br />

in a relatively inactive investment sales market compared to<br />

the previous six-month period. Major deals done amidst the<br />

quiet market include Cambridge <strong>Industrial</strong> Trust’s purchase<br />

of 79 Tuas South Street 5 and its adjacent logistics building<br />

for S$10.4 million and S$7.6 million, respectively, in April<br />

2008, and First REIT’s purchase of the uncompleted 233,975-<br />

sq ft healthcare logistics and distribution centre in Tuas for<br />

``<br />

``<br />

Transactions which took place in the review period amidst the<br />

cautious investment market include the sale of Boustead Hub<br />

at Ubi Avenue 1 to SEB for S$200 million or S$528 per sq<br />

ft, the sale of Frontech at Jalan Kilang Barat to AG Frontech<br />

Pte Ltd for S$30 million or S$417 per sq ft, and Mapletree<br />

Investments’ purchase of three business park buildings from<br />

JTC Corporation.<br />

Demand for high-specs industrial space will likely continue<br />

to ease as spillover demand from the office sector eases.<br />

Furthermore, with more than 1 million sq ft of multi-tenanted<br />

high-specs space expected to complete in 2009, rents are<br />

likely to face downward pressure of up to 10.0% in the next<br />

12 months.<br />

32<br />

<strong>Colliers</strong> International | REGIONAL RESEARCH


ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | NOVEMBER | 2008<br />

EXECUTIVE SUMMARY<br />

Singapore<br />

major transactions in SINGAPORE<br />

transactions<br />

building / land plot property type Lease / Sale tenant / purchaser<br />

floor / land area<br />

(sq ft)<br />

1, 3 Tuas Avenue 8 Factory Lease Undisclosed 93,600<br />

iQuest @ IBP High-Specs Lease Bio-Rad Laboratories 25,000<br />

46A Tanjong Penjuru Warehouse Sale Lasalle Investment Fund 523,685<br />

Tuas View Lane Warehouse Sale First REIT 233,975<br />

79 Tuas South Street 5 Warehouse Sale Cambridge <strong>Industrial</strong> Trust 67,942<br />

Private lot adjacent to 79 Tuas South Street 5 Warehouse Sale Cambridge <strong>Industrial</strong> Trust 49,686<br />

11 Bedok North Avenue 4 Warehouse Sale AMB Property Construction 212,739<br />

Boustead Hub High-Specs Sale SEB 379,085<br />

Frontech High-Specs Sale AG Frontech Pte Ltd 69,382<br />

The Synergy, The Strategy, The Signature High-Specs Sale Mapletree Investments Pte Ltd n.a.<br />

<strong>Colliers</strong> International | REGIONAL RESEARCH 33


ASIA PACIFIC INDUSTRIAL MARKET OVERVIEW | NOVEMBER | 2008<br />

Definitions and Terminology<br />

1. MULTI-NATIONAL CORPORATION (MNCs)<br />

A multi-national corporation is defined as a large company that has<br />

operations in multiple nations and that requires industrial space.<br />

2. FACTORY<br />

Unless otherwise stated, this refers to single-user industrial space<br />

catering to MNCs for production / manufacturing purpose.<br />

3. WAREHOUSE<br />

Unless otherwise stated, this refers to single-user industrial space<br />

catering to MNCs with warehousing requirements as well as their<br />

business as third party logistics, distribution and warehousing.<br />

4. HIGH-SPECIFICATIONS (HIGH-SPECS) INDUSTRIAL<br />

SPACE<br />

6. MONTHLY GROSS RENT FOR HIGH-SPECS SPACE<br />

This is the monthly rent payable to a landlord less all tenant<br />

inducements e.g. rent free periods. It includes the amount of interest<br />

income foregone for the security deposit, maintenance fees (i.e. fees<br />

for maintaining common areas e.g. security, building insurance and<br />

normal water and energy consumption) and statutory real estate<br />

charges (e.g. property tax).<br />

Data is expressed in per sq ft of net floor area, which includes common<br />

areas such as toilets, corridors, stairways, lift lobbies, etc. A three year<br />

lease term is common in most countries in the <strong>Asia</strong> <strong>Pacific</strong> region.<br />

7. MONTHLY GROSS RENT FOR SINGLE-USER INDUSTRIAL<br />

SPACE<br />

This is the monthly rental payable to a landlord for a whole industrial<br />

premise by a single tenant. Data is expressed in per sq ft of gross<br />

floor area. A three year lease term is common in most countries in<br />

the <strong>Asia</strong> <strong>Pacific</strong> region.<br />

This refers to multi-user industrial premises catering to MNCs with<br />

floor areas of about 10,000 sq ft, fitted with higher than normal<br />

specifications and offering hybrid office-industrial characteristics.<br />

This type of space is suitable for high value-added, technology-based<br />

manufacturing, information technology, product development, and<br />

research and development.<br />

5. LAND<br />

Land refers to vacant prepared land with roads, drainage, electricity<br />

supply, water supply, telephone service and sewerage. The land is<br />

typically located within industrial estates that are frequently inquired<br />

by MNCs and located between 10 and 100 km of the metropolitan<br />

area.<br />

In addition, the land is also a single-user, single-development site, as<br />

opposed to one that is intended for parcellation for multiple users.<br />

This report and other research materials may be found on our website at www.colliers.com. Questions related to information herein should be directed to the Research Department at the number indicated<br />

on the back page. This document has been prepared by <strong>Colliers</strong> International for advertising and general information only. <strong>Colliers</strong> International makes no guarantees, representations or warranties of any<br />

kind, express or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the<br />

information. <strong>Colliers</strong> International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. <strong>Colliers</strong><br />

International is a worldwide affiliation of independently owned and operated companies. This publication is the copyrighted property of <strong>Colliers</strong> International and /or its licensor(s). @ 2008. All rights reserved.<br />

34<br />

<strong>Colliers</strong> International | REGIONAL RESEARCH


For further details, please contact:<br />

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Halifax Building 8F, 16-26, Roppongi 3-Chome<br />

Minato-ku, Tokyo 106-0032<br />

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Fax : 81 3 5563 2100<br />

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RCB No. 198105965E<br />

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204/205 Kanchenjunga, 18 Barakhamba Road<br />

Connaught Place, New Delhi 110 001<br />

Tel : 91 11 2335 6620<br />

Fax : 91 11 2335 6624<br />

Surabhi Arora<br />

Senior Manager, Research<br />

Surabhi.Arora@colliers.com<br />

AUSTRALASIA<br />

Melbourne, Australia<br />

Level 32 367 Collins Street<br />

Melbourne VIC 3000<br />

Tel : 61 3 9629 8888<br />

Fax : 61 3 9629 4944<br />

Felice Spark<br />

NSW Research Associate Director<br />

Felice.Spark@colliers.com<br />

Sydney, Australia<br />

Level 12, Grosvenor Place, 225 George Street<br />

Sydney NSW 2000<br />

Tel : 61 2 9257 0222<br />

Fax : 61 2 9251 3297<br />

Felice Spark<br />

NSW Research Associate Director<br />

Felice.Spark@colliers.com<br />

Auckland, New Zealand<br />

Level 27, 151 Queen Street, Auckland<br />

Tel : 64 9 358 1888<br />

Fax : 64 9 358 1999<br />

Alan McMahon<br />

Director, Research and Corporate Services<br />

Alan.McMahon@colliers.com<br />

Wellington, New Zealand<br />

Level 10, 36 Customhouse Quay<br />

Wellington<br />

Tel : 64 4 473 4413<br />

Fax : 64 4 499 1550<br />

Alan McMahon<br />

Director, Research and Corporate Services<br />

Alan.McMahon@colliers.com<br />

www.colliers.com<br />

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