In 2015, CBRE published two reports in the "China Industrial Real Estate – the Making of a New Normal" series. These reports provide analysis on trends surrounding the development of industrial parks in recent years, including a discussion of market factors and industrial land policy. The introduction of a series of new policies against the backdrop of rising production costs, including land and labor costs, following the rapid growth of China’s economy over the last 20 to 30 years, has brought about the conditions necessary to spur the upgrading of industrial infrastructure.
In the coming years, the growing influence of market factors is likely to lead to more effective use and allocation of land for industrial development. The upgrading of industrial infrastructure, including the transformation of industrial property and facilities, is occurring in concert with a series of economic and social transformations taking place in China. This report focuses on the opportunities and challenges facing developers looking to upgrade their industrial real estate facilities amidst the transformation of industrial parks and industry in China.