In the past decade, the logistics real estate market in China has experienced a spurt of development, attracting investors for the considerable return. Meanwhile, valuation of the logistics property is one of the most important issues since it links the risk and return when the investment scale continues to grow. This thesis applies the asset pricing model to explore the relationship between the potential risk consideration and the expected cap rate of the investor. This is because the cap rate is a sole indicator adopted in the practices of valuating the logistics property asset by the widely used income capitalization approach. Findings of this thesis suggest that on the micro level, land cost, land supply and construction cost significantly affect the expected cap rate while those operational indicators such as occupancy and rental do not significantly affect it. On the macro level, the expected cap rate is affected deeply by the macro-economic environment of China, which is indicated by the results: the GDP growth of China, the CPI growth of China and the M2 growth of RMB as three statistically significant factors in influencing the expected cap rate, among which the GDP growth of China serves as the most influential factor. Combining both micro and macro factors, this thesis further finds the model of micro factors have larger explanatory power compared with the model of the macro factors. This is evidenced by explanatory power of regression models and the goodness of fits. The implications of this thesis are discussed.