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  • News
  • 28 July 2021

The trend of investing in factories for lease or resale

The outbreak of the covid-19 pandemic creates many opportunities and challenges for investors, especially industrial real estate. While resort real estate temporarily slow down still, land plots and townhouses tried to maintain transactions at a relatively good pace, and industrial real estate created a big surprise. This segment shows the possibility that supply-demand increases and the price level move upward between the epidemic.

At present, many businesses are looking for factories and warehouses for rental. They often look for existing factories to save on initial costs. Investing in factories for lease or resale is a potential form of real estate investment in recent years.

Investment projects to build factories for rent or sale are increasing, especially in places like Dong Nai, Binh Duong, and Long An. Because the scale of factories is suitable for many businesses and brings effective operations.

In the market, there are three ways for investors to take into consideration. The first is to rent land, build and sub-lease. This method requires investors have to the experience to calculate the most reasonable costs. Next is to rent an existing workshop and re-lease. This method earns little profit but  safe for investors. The third method is to build a factory (or industrial park) and rent it out. However, investors must have enough capacity and finance to do.

Professionals appreciate industrial real estate for three reasons:

  • The EU-Vietnam Free Trade Agreement (EVFTA) comes into effect.
  • The plan to leave China of many multinational corporations and the destination is Vietnam.
  • Vietnam’s disease control activities are highly appreciated by the international community as a solid motivation to attract foreign capital into Vietnam.

However, the rent increase creates hesitation for investors when looking for suitable opportunities. There exists a gap between the expectations of suppliers and investors. Therefore, the rental factory needs to solve the problem of benefits in the most balanced way.

Renting ready-built factories has outstanding advantages for SMEs. The following five reasons clearly show why should choose a ready-built factory. Firstly, it helps businesses save time effectively. Besides, it saves initial and long-term costs for businesses. The third is to take advantage of the highly specialized staff and support services of the factory tenant. In addition, it will help enterprises to transform production models quickly. Finally, security issues and regular maintenance are supported by the ready-built factory unit. With this advantage, ready-built factories will help enterprises quickly go into production and aim for sustainable development.