New warehouse supply in major cities rebounded to 1.19 million sq. m. in Q3 2018, 75% of which was in tier I cities, helping to alleviate the supply shortage. New stock completed in tier1 cities this quarter was quickly snapped up by tenants with large-size warehouse demand, net take up in tier I cities surging to a record high of 727,000 sq. m., pushing up nationwide net take up to 1.14 million sq. m. The overall vacancy rate declined by 0.3 pps to 8.7%, with vacancy in Beijing, Suzhou and Wuxi falling to below 1%. Average rents increased by 0.3% q-o-q, driven by strong gains in Shenzhen,Beijing and Guangzhou.