In investment promotion efforts, the method of land supply significantly impacts the efficiency of project implementation.

With the gradual rise of emerging industries, the traditional, one-size-fits-all land supply model can no longer meet enterprises’ diverse production needs.

On the one hand, the fixed-term land grant model cannot flexibly adapt to enterprises’ investment and production cycles, resulting in a certain degree of land resource idleness.

On the other hand, the mechanisms for project entry and exit are insufficiently developed, making it difficult for old projects to exit and new projects to enter, which affects the flexibility and efficiency of investment promotion efforts.

Recently, a new round of market-oriented factor reforms has begun, with 10 cities, including Beijing, Hefei, and Chongqing, taking the lead in pilot programs.

Regarding industrial land, the focus is on promoting models such as standard plots, lease-to-own, long-term leasing, and flexible supply.

For start-ups and growing enterprises, the flexible selection of land tenure and area reduces initial investment risks.

For large-scale projects, long-term leases ensure land stability, providing robust land support for business development.

So, what lessons can be learned from these local innovations in industrial land use?

01 Long-Term Leasing

This approach involves using an entire parcel of land through a lease for the entire contract period. Enterprises are not required to make a large one-time investment to purchase the land but only need to pay rent annually.

● Term: Generally no less than 5 years and no more than 20 years, with the option to renew upon expiration

● Suitable Enterprises: Industrial enterprises requiring long-term, stable land use

● Representative Cities: Guangzhou, Shenzhen, Chongqing, etc.

Previously, an economic development zone in a certain region successfully leased a plot of industrial land spanning nearly 60 mu through a “long-term lease” arrangement.

The enterprise used the plot for the construction of an energy storage power station project, with an agreed lease term of 20 years.

Notably, the enterprise was permitted to pay the rent in four installments, with no interest charged on the installment payments.

This arrangement directly reduced the company’s upfront land costs by nearly 5 million yuan.

Similarly, to support a machinery manufacturing company in commencing construction as soon as possible, Chongqing proactively reached out to the company and provided proactive services.

Through a “long-term lease” arrangement, the city provided the enterprise with industrial land, granting a 5-year leasehold right.

Innovative practices across various regions demonstrate that this approach not only lowers the threshold for enterprises to secure land but also alleviates their financial pressure with tangible financial support, allowing them to concentrate more resources on core activities such as project construction, technological R&D, and equipment procurement.

02 Lease-to-Own

This approach allows enterprises to first acquire land use rights through a lease at a lower cost. After meeting agreed-upon investment and output targets within a specified period, they may apply to convert the lease into a formal land grant, thereby obtaining full land use rights.

● Term: The lease term generally does not exceed 5 years

● Suitable Enterprises: Suitable for enterprises requiring significant initial investment but expected to quickly meet the agreed-upon investment conditions.

● Representative Cities: Hefei, Hangzhou, Guangzhou, etc.

The advantages of “lease-to-own” are particularly notable. For enterprises, this model effectively addresses the challenge of concentrated capital investment during the project’s early stages.

In the early stages, enterprises need only pay rent rather than the full land transfer fee, allowing them to direct limited funds precisely toward R&D, equipment, and production.

Upon successfully meeting the agreed-upon targets, the enterprise can obtain long-term, stable land use rights, laying the foundation for subsequent financing, expansion, and long-term strategic planning.

For local investment promotion, this approach not only prevents land idleness and inefficient use but also allows for dynamic assessment of a company’s capabilities and growth potential.

By the time the transfer stage arrives, only high-quality enterprises with genuine capabilities and a track record of fulfilling commitments remain, closing the loop from “attracting” to “retaining” and driving the clustering of high-growth, highly compatible projects.

For example, a local equipment manufacturing park successfully attracted a machinery manufacturing enterprise to the park using the “lease-to-own” model.

To extend its industrial chain, the enterprise leased nearly 30 mu of industrial land. After achieving all agreed-upon targets during the 1.5-year lease period, it recently successfully completed the land transfer procedures and obtained stable land use rights for nearly 50 years.

Similarly, Beijing Yizhuang has taken its approach a step further by offering land supply methods with varying terms and types tailored to different industrial projects.

Currently, a five-tier industrial land supply model has been established: “50-year (national strategic projects) + 20-year flexible transfer + lease-to-own + construction of standard factory buildings on behalf of enterprises + urban renewal of industrial land.”

These diverse industrial land supply methods flexibly adapt to the development needs of enterprises’ production cycles.

For investment promotion, “lease-to-own” is not only an innovation in land supply methods but also a strategic measure to optimize the regional business environment and enhance industrial stability.

03 Flexible-Term Concession

This method refers to the supply of an entire land parcel with a concession term shorter than the statutory maximum of 50 years for industrial land.

● Term: Local authorities provide flexible concession terms of less than 50 years based on the industry’s life cycle and enterprise needs.

● Target Enterprises: Suitable for enterprises seeking to obtain land use rights within a shorter timeframe, as well as those in the mid-stage of development

● Representative Cities: Suzhou, Guangzhou, Nanjing, etc.

Compared to traditional methods, flexible-term land grants have proven highly effective in reducing enterprises’ initial investment and flexibly aligning with project development timelines.

For example, under the flexible land concession term policy introduced by Huizhou City, enterprises can choose concession terms of 5, 10, or 20 years based on their specific needs.

By allowing enterprises to independently select a land use term that suits their needs, this approach not only meets the requirements of the project’s development cycle but also reduces land costs, freeing up more capital for research and development.

It is reported that through this flexible land grant term approach, the region has reduced land costs by over 200 million yuan for more than 20 enterprises.

Some regions have even gone a step further by exploring a “combined” land supply model based on the flexible term approach.

In Guangzhou, for industrial projects that meet production and output assessment criteria, enterprises may choose to apply for adjustments to the land supply method either upon the expiration of the agreed supply term or during the supply period.

For example, in projects that follow a “lease-to-own” model, enterprises may apply for a lease renewal upon the expiration of the initial lease term; during the long-term lease period or upon its expiration, they may apply for a flexible land grant.

A certain industrial park in Suzhou has also innovatively explored a "segmented flexible-term" (10+N) land grant model for industrial land. Enterprises sign an "Industrial Development Agreement" and undergo performance evaluations regarding project investment and production capacity attainment.

Upon passing a joint assessment by relevant government departments, the enterprise may acquire land use rights for an additional N-year term, with the combined duration of the two transfer periods not exceeding 30 years.

Flexible-term land grants not only optimize the allocation of land resources but also better promote enterprise investment and production.

From the perspective of investment promotion practices, the shift from a “one-size-fits-all” approach to “customized” solutions demonstrates that flexible-term land grants are not merely an optimization of land supply methods but also a crucial pathway to providing precise services to enterprises and meeting their production requirements.

In Conclusion

At a time when emerging industries are rapidly rising, innovating industrial land use models is a core measure for revitalizing enterprises and enhancing investment promotion competitiveness.

We observe that many regions are adopting flexible combinations of approaches such as long-term leases, lease-to-own arrangements, and flexible-term land supply.

This approach not only precisely matches the development needs of different types of industrial projects and facilitates their rapid implementation but also effectively revitalizes existing land resources, reducing the burden on enterprises through lower investment thresholds.

Practice has shown that, when dealing with industrial projects of different types and at different stages, innovative industrial land use models effectively enhance the quality and efficiency of project implementation.