Most people recognize that China is a manufacturing powerhouse that produces everything from shoes to cars, but few have given much thought to how goods get from one factory in southern China to one thousand different retail stores around the country or even to stores in one hundred different countries. Many people also understand that in the modern manufacturing world, parts for one airplane or from one car come from multiple manufacturers in multiple countries and where the airplane or car is put together is these days likely to be more of a an assembly facility than an actually manufacturer (maker) of the actual product. The key system that makes all of these things happen is modern logistics.

Tianjin has built a robust manufacturing base starting within the last several decades, attracting foreign companies like Motorola and Kimberly-Clark to operate factories here. Additionally, Tianjin boasts the largest seaport in North China which also brought many import export businesses who take advantage of the port to conduct trade. Logistics space, specifically international grade warehouse, was needed to support these businesses at the time. Around ten years ago, developers of high-quality warehouse space rushed into the market to fill the gap in demand. These spaces were largely used for storage of raw materials needed by the factories for production as well as for temporary storage of goods bound for export.

However, as the economy has transformed from one dominated by manufacturing into a service based economy, logistics demand from these sectors has weakened and the primary end-users have changed. Rising consumption levels have brought new warehouse demand from e-commerce and traditional retailers. JD.com, one of China’s major e-commerce giants, leased a total GFA of 200,000 sqm in Tianjin.

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