The potential of ready-built factories for rent

According to the survey, the demand for renting ready-built factories is on the rise. This makes the market start to heat up again. Experts say that in the last months of 2024, the market witnessed many successful transactions.

Warehouse and ready-built factory market

According to Ms. Trang Le, Senior Director of Consulting and Research, JLL Vietnam. Vietnam is becoming a destination for many international manufacturers. Most mid-sized and smaller manufacturers choose to rent warehouses or ready-built factories instead of building new ones. Mainly to shorten the time as well as reduce initial investment costs.

In particular, the demand for renting warehouse and ready-built factories space with an area of ​​1,000 – 5,000m2 is increasing rapidly. Businesses with this need are mainly operating in light industry. They need to look for locations near residential areas where their potential customers are concentrated. This will promote the small and medium-sized warehouse and ready-built factory for rent segment.

Notably, the net absorption rate of the warehouse and ready-built factory segment was positive. Originating from increased domestic demand. In addition, orders to build warehouses/factories as requested by investors are also a driving force to help balance supply and demand in the logistics market. The size of the Southern and Northern logistics market in 2024 has increased about 1.6 times (compared to 2023).

Besides, according to experts. The supply of factories and warehouses is increasing mainly due to increased demand from the e-commerce market.

Meets the needs of the majority of businesses

General Director of Cushman & Wakefield Vietnam Ms./Mrs. Trang Bui said. Warehouses and ready-built factories for rent are the type that meet the needs of the vast majority of businesses today. However, they are also pre-connected to public infrastructure, meeting the criteria of quickly operating. Shorten preparation time for investors with diverse areas. Many price segments suitable for businesses’ capabilities. Next is the industrial park planned in prime locations near the port and airport systems. Suitable for transportation and import and export of goods. And especially the legal is clear and transparent. Fire protection system meets standards. From there, businesses can rest assured and operate production.

Warehouse supply in the Southern region, especially Ho Chi Minh City, is facing great pressure as it has reached a high level; and demand is constantly increasing due to the development of e-commerce. Therefore, investment in infrastructure and logistics will become an important part of strengthening the supply chain. And meet the storage needs of goods from both domestic production markets and international manufacturers.

From the above factors, warehouses and ready-built factories are forecasted to be the most vibrant segment in the industrial real estate market in the next few years. Warehouses and ready-built factories for rent are increasingly growing in both quantity and quality to meet the real needs of investors. Many industrial park project developers are also promoting this segment. And consider this as a solution to diversify customer files, as well as revenue sources in the current context.

Rental prices remain stable in many projects. The average price in the whole market continues to increase slightly. However, only the multi-functional segment has high rental prices.

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