“Upstream and downstream” are just “upstairs and downstairs,” and “one building” represents “an entire industrial chain.”

This new model of industrial space—known as “industry moving indoors”—has attracted significant attention from government-run industrial parks.

From the introduction of relevant policies to the actual implementation of “moving up,” followed by grand investment promotion campaigns, it seemed as though they had seized a “new opportunity.”

In reality, however, once implementation began, it became clear that while there was plenty of “moving indoors,” there was a lack of “investment attraction.” Furthermore, after projects began production and operations, shortcomings that made them unsuitable for manufacturing production continued to emerge.

When re-examining “Industry Upstairs,” it is crucial to identify several core issues: Which industries are suitable for moving indoors? What is the optimal height for these facilities? And what is the core target market for the products?

Ultimately, the end goal of moving into high-rise buildings is attracting investment, and industrial positioning determines product design.

01 From Uncontrolled Expansion to Rational Advancement

To address the shortage of industrial land, optimize regional industrial structures, and promote industrial transformation and upgrading, a new industrial trend has emerged: “Industrial Verticalization.”

However, industry is diverse and multifaceted, and different enterprises have varying needs for factory buildings.

With businesses from all sectors under one roof, the ability to meet customized needs directly determines whether a company will move into a high-rise facility.

For example, biopharmaceutical companies require Class 100,000 cleanrooms; precision instrument manufacturers need anti-vibration and shock-absorption measures; and light manufacturing enterprises, which involve large-scale machinery and equipment, require construction standards—such as floor-to-ceiling height and load-bearing capacity—that meet specific requirements.

"Industrial Upgrading" is no easy feat; not just anyone can simply "move upstairs."

Seizing this opportunity, many traditional real estate developers have also ventured into “industrial vertical expansion” projects, carrying out these initiatives with great fanfare. They have come to view this industrial sector as a new turning point in the industry, following residential and commercial real estate.

However, what ultimately follows is vacant factory space and difficulty in recouping investments, inevitably leading to abandoned projects, wasted resources, and difficulties in attracting investment.

A re-examination of the underlying logic of “industrial-to-residential conversion” reveals its true nature. Whether an industrial facility should be converted depends on the type of enterprise—that is, the industrial positioning of the park.

In short, the level of value added in the industrial sector is one of the key factors determining whether industry should move indoors.

If a region has a surplus of industrial land but lacks a robust industrial base, even 100-meter-tall “industrial high-rises” will inevitably face vacancy.

As a new model of spatial utilization, this approach primarily addresses the needs of industrial upgrading and transformation. It not only helps alleviate the shortage of industrial land but also significantly increases output per acre, unlocking the potential for land utilization.

Although most enterprises opt for high-rise factories, they still prefer the ground floor for the convenience of production and transportation. Some enterprises, to prevent vibrations from upper floors, tend to choose the top floor or upper floors.

As a result, vacancy rates on intermediate floors are rising, making tenant recruitment a challenge.

Take Shenzhen as an example: the types of enterprises moving into these high-rise facilities are clearly defined. They are strategic emerging industries represented by the “20+8” sectors, including “high-tech, precision, and cutting-edge” industries such as next-generation information technology, high-end equipment manufacturing, biopharmaceuticals, smart manufacturing, and the industrial internet.

Companies in these sectors typically have lighter equipment, produce less noise and pollution during manufacturing, and meet the requirements of “industry moving upstairs” in terms of industrial adaptability and freight efficiency—making them highly suitable.

02 From Rigid Application to Local Adaptation

As the wave of Industry 4.0 sweeps across the globe, traditional manufacturing is undergoing a transformation toward automation, digitization, and intelligent manufacturing.

However, traditional factory buildings suffer from low utilization rates, inadequate supporting facilities, and a lack of customization, making it difficult to meet the demands of modern manufacturing. Furthermore, as cities undergo industrial transformation and upgrading, a large number of high-tech industries require innovative production spaces.

The innovative "industry-to-high-rise" model is attracting increasing attention. However, when screening industries to identify suitable candidates for relocation to high-rises, not all enterprises are suitable.

Certain industrial processes rely on large machinery or heavy-duty lifting and transportation equipment, and the sheer size and weight of their products make moving these operations into high-rise buildings impractical. Furthermore, factors such as noise, pollution, and radiation generated during production must also be carefully considered when determining suitability for high-rise relocation.

China is currently in a critical phase of industrial transformation and upgrading. Traditional manufacturing is extending toward the downstream of the industrial chain and the higher end of the value chain. The number of large-scale, heavy-duty processing enterprises is decreasing, replaced by emerging industries such as electronics and information technology—which feature advanced production processes, lighter equipment, and minimal R&D disruption—as well as smart manufacturing and biopharmaceuticals.

This implies the need to follow the logical sequence of “positioning first → design next → investment promotion last.”

Many industrial parks have seen soaring vacancy rates in their “vertical industrial” facilities due to a lack of clear industrial positioning; some even engage in investment promotion before defining their positioning—a case of putting the cart before the horse that is inherently problematic.

Therefore, the type of enterprises to be attracted should be determined based on the industrial positioning, which in turn dictates the design of the carrier space—including floor-to-ceiling heights, freight elevators, and various supporting facilities. The focus should no longer be on price discounts, but rather on constructing a value system that prioritizes the long-term development of enterprises.

At the same time, when referencing the five key elements of “industrial-in-buildings”—environmental protection and safety, vibration reduction and isolation, process requirements, vertical transportation, and equipment load capacity—pay attention to the following three points:

1. Planning and Design Principles

In design, the focus should not merely be on architectural form and function, but rather on integrating future directions for industrial upgrading and investment attraction to create a mixed-use park that is as diverse and integrated as a community, encompassing supporting facilities, manufacturing, and R&D offices.

2. Key Architectural Design Considerations

A series of challenges—such as incomplete production spaces, inflexible production lines, excessively long freight flow paths, and insufficient clear height for crane operations—make the “Industry Up” model particularly difficult to implement. Therefore, designing high-quality spaces requires a forward-looking perspective on industrial positioning.

3. Cost Strategy and Estimation

As evidenced by these various challenges, both blind cost-cutting and poor design lead to varying degrees of resource waste. Precisely for this reason, the design team must provide sound recommendations to ensure the project’s long-term sustainability.

03 From Building Nests to Attracting Phoenixes to Planting Trees and Reaping the Fruits

By implementing "Industry Up," the three major pain points in manufacturing development are resolved, creating a virtuous cycle in terms of industrial clustering, output value, and regional development.

Today, upstream and downstream industries are literally “moving up and down the building,” and “Industry Upstairs” will solidify the foundation of the manufacturing sector.

Previously, we witnessed how “Industry Upstairs” made it possible for cars to “take the elevator” up to higher floors.

At the nation’s first 100-meter-tall prefabricated “skyscraper factory”—the Shenzhen Pingshan New Energy Vehicle Industrial Park—and Shenzhen’s first advanced energy storage industrial park planned and constructed according to “Industry Upstairs” standards.

With floor-to-ceiling heights reaching up to 10 meters, large vehicles can drive directly to the third floor for loading and unloading. Each factory building is equipped with oversized freight elevators, allowing small vehicles to “take the elevator” up to the 17th floor—truly realizing “industry going vertical.” This has already attracted a number of new energy enterprises, including BYD and Sunwoda, to sign agreements and move in.

In addition, the Shanghai Xincheng Guchuan Smart Manufacturing Industrial Community is dedicated to creating high-quality spaces, with the goal of fostering industrial development. It is planning new production spaces and building a high-quality integrated industrial and research complex.

Crucially, “industry moving indoors” meets the demand for high-quality spaces from advanced industries and leading enterprises. Focusing on emerging sectors such as new energy vehicles, medical devices, and modern manufacturing, the community is now actively recruiting tenants globally.

Located in the core area of the Lingang Free Trade Zone—a strategic national hub—the community enjoys a strategic advantage of connecting north and south. It offers direct access to the Lujiazui Financial District within 30 minutes and connects to the two major international transportation hubs of Pudong and Hongqiao within 45 minutes, boasting an exceptional geographical location.

Leveraging a modern, multi-modal transportation network, it offers rapid access to major cities in the Yangtze River Delta region—including Hangzhou, Suzhou, Wuxi, Changzhou, Nantong, Jiaxing, and Ningbo—within 1.5 hours.

In the future, the “industry-in-towers” model may evolve from “building nests to attract phoenixes” to “planting trees to harvest fruit.” Managing industries with an agricultural mindset—though relatively traditional—is a sound approach.

Fruit trees thrive when soil nutrients are maintained at optimal levels, allowing crops to grow well—a process of “planting trees and harvesting fruit.”

If, however, the fruit trees are introduced through transplantation, they may struggle to adapt to the new environment, and the ultimate outcome is predictable.

Industrial investment promotion should no longer focus primarily on relocating corporate operations but rather on achieving growth through incubation. The relocation of enterprises between cities does not actually increase productivity; instead, we should focus on how to incubate more high-quality enterprises and help them grow stronger and larger.

While “building a nest to attract phoenixes” may yield immediate results, for regions with an innovative spirit, the “planting trees to harvest fruit” mindset may hold greater potential.