Industrial Real Estate In Beijing Economic-Technological Development Area (BDA)

THIS paper is a study on industrial real estate in Beijing Economic-Technological Development Area (BDA) and in Singapore. Based on the experiences and lessons from the history of industrial real estate in Singapore, suggestions for the development of industrial real estate in Beijing Economic-Technological Development Area (BDA) were promoted.Industrial real estate included properties of Ready Built Facility, Build to Suit Factory, Industrial Park, Science Park, R& D, HQ, Business Park, Suburban Office etc. The history of industrial real estate in China was very short and there were few researches on the topic.In this paper, Beijing Economic-Technological Development Area (BDA) was selected as a sample for the development of China industrial real estate. As the only state level Economic-Technological Development Area in Beijing, BeijingEconomic-Technological Development Area (BDA) has become the base for foreign investment and high-tech manufacturing and export oriented enterprises. Clusters for industries of mob phone, micro-electronics, biology and new medicines have existed. With the change of the way of growth of economy, the focus of business promoting should be changed from quantity to quality and high tech industries should be strengthened. At same time, service industries and high value add industries should be developed. More efforts should be made to attract headquarters, R&D centers, and financial centers.Beijing Economic-Technological Development Area (BDA) grows very fast. GDP and total industrial output increase tremendously. Foreign enterprises and high tech enterprises have become the main factors in the growth of BDA.As the hub of Yizhuang New Town, one of several priorities of suburb towns of Beijing, BDA will become an international park for high-end industries and for living.In 2006, Beijing industrial market increase smoothly and the sale price and rental increased because of scarcity of land supply. As the long lease term and stable return of industrial real estate, the market is becoming new target of foreign investment. The industrial market of Beijing Economic-Technological Development Area (BDA) has always been stable and vacancy rate has been low. In 2006, Nokia started to build its China R&D center and US Conning announced that the company will invest USD 1 billon for its first production base in China. With the coming of Coniing, more of its suppliers will come to BDA.There are government related companies, local private companies and international investment companies in BDA. International investment companies came with international standards, ideas and means. Most of them are long term investors and they will promote the progress of China industrial real estate.The economy of Beijing has moved into"high way", and the economic numbers increase very fast. This indicates the great potential of Beijing industrial real estate. In future, industrial real estate will follow the policies of Beijing industries, i.e. to support the high tech enterprises.The development of Beijing Economic-Technological Development Area (BDA) in first 6 years was stable and moved very fast in recent 4 years. Now the industries of BDA are on the high-end and market will become more professional. The increase of industrial land price and the high standard of land production will make the hurdle of investment in BDA higher. And industrial land supply will not be as much as before. There will be more types of products. However, the industrial real estate in BDA will continue moving rapidly.Compared with other parks of Beijing, BDA is the most matured one with good location, good master plan and good base for modern manufacturing. Singapore industrial real estate was used as a reference in this paper and analysis was done for the history and existing condition of it. The contribution of Singapore industrial parks to GDP was 25%。Singapore is the new industrial county and finance center of Southeast Asia. Manufacturing is the main industry of Singapore with focus on capital intense and high tech industries.Land in Singapore is extremely limited and investment of industrial facilities needs huge and long term capital. Singapore has its very special experience. The fund for industrial parks came from government loan, the rental from leasing and industrial fund and REIT.The cooperation of industrial real estates in BDA and Singapore will help us to learn more about the existing condition of industrial real estate in China and to find the right direction of future development and to avoid mistakes as much as possible. There are some in common between the development of BDA and Singapore. Both started from manufacturing. Both depend a lot on MNC. Both move to high tech industry. Both face with the problem of land scarcity. Both under the pressure of increase of cost. Both have to adjust the position of parks. Both governments control the market. Both governments have to change their roles.BDA may learn form Singapore's experience and lessons. BDA should kept stable social environment with completed laws and policies; positioning properly; pay attention to master plan; government should play an important role in economy; marketing globally; provide high quality park services; save land and use land with high efficiency; control cost to keep the park competitive; promote financial innovations; create an environment of work, play, learn and entertainment; upgrade industries and growth organically; encourage innovation and create bright future.The meaning and character of this paper:1,BDA is very important in Beijing's economy but no detailed study on it has been done yet. This paper is just the study on it.2,The industrial real estate development in Singapore is well recognized in the world and there some reaches on it in China. But no research on the cooperation was done between industrial zones of China and Singapore. This paper is just the study on it.3,Study on real estate has always depended on the numbers from investigations. Now no detailed and completed investigations on BDA existed. The writer investigated each park in BDA and visited parks in Singapore.4,The writer took or collected a lot of pictures to make the paper more readable.