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A brief survey of Shanghai's industrial estates
Industrial Parks, the engines of Shanghai's growth: surrounding the city but equally inconspicuous. This article will provide a brief survey of some of the locations, types and problems associated with Shanghai's industrial estates. Many of these places are much more than industrial estates - they are more like regions dedicated to and competing for industrial enterprises. Hosting companies ranging from electronics and precision engineering to print & packaging through to conventional dry goods storage. All in an array of buildings from 1950's style brick and timber warehouses to ultra modern hybrid office/industrial constructions.
There are six industrial areas around Shanghai. In the north Jiading, to the west Qingpu and Songjiang, Xinzhuang in the south and Waigaoqiao and Jingqiao in the South East. The table below gives an overview of each regions relative proximity to the city centre, standard unit sizes and rental terms:
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Jiading |
45 |
25 |
Qingpu |
16 |
40 |
Songjiang |
2 |
18 |
Xinzhuang |
14 |
18 |
Waigaoqiao |
10 |
20 |
Jingqiao |
20 |
18 |
Of the above, Xinzhuang is probably the most accessible to the city centre, with the new Line 5 subway running into the area. An important point when considering not just monthly costs, but how the work force is expected to commute.
The range of buildings available is impressive. These include some pre-1949 style warehouses of brick and wood construction, through to high specification multi-story facilities. Eves height usually varies between 5-8m with some buildings offering greater clearance. As would be expected, properties also come either as clear span buildings or pillar supported, depending on requirement. Most buildings are usually flexible in their usage designation and can host full manufacturing operations through to dry storage for distribution. However, separate licensing may be required for certain operations, particularly if this involved hazardous materials or food and beverage production. Clients should check in advance on these specific additional requirements.
One point to be aware of for those seeking spaces smaller than 1,000sqm - this can be a problem. Most building footprints start at a minimum size of 1,000sqm and landlords are not keen on subdividing these units.
Average rents for the areas are given below, although you should note these will vary according to the quality and specific location of any property. Rents assume modern build open span accommodation:
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Jiading |
0.07 |
Qingpu |
0.07 |
Songjiang |
0.08 |
Xinzhuang |
0.10 |
Waigaoqiao |
0.16 |
Jingqiao |
0.15 |
Finally, don't forget that, perhaps more than would be the case with office buildings, these industrial centres have an eye on their tenants' future revenue. Largely government controlled, they are seen as a way of attracting tax revenues into their district. So potential tenants should pay particular attention to any tax breaks on offer and, ensure they 'promote' the benefits of the landlord attracting their type of company to the premises.
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