CHINA OFFICE TENANT PROFILE AND DEMAND OUTLOOK 2017 CHONGQING
- China Office Tenant Profile and Demand Outlook | 2017 Chongqing presents the first-ever survey and study of tenant structures of Chongqing Grade A office occupiers in the industry. The survey covers a total of 40 Grade A office buildings that meet with the standards of CBRE’s Grade A office specifications, while the number of occupiers involved exceeds 1,800. The report consists of three sessions – survey, findings and outlook.
- “Survey” session introduces the structure of Chongqing Grade A office occupiers. Sector-wise, finance, service, real estate, retail and trading, and TMT dominate the demand drivers in the respective order; of them, finance accounts 36% of total absorption rate, its share being on par with the levels of tier 1 cities. Foreign companies remained prudent in real estate strategies, whereas home-grown and domestic occupiers continued to express interest in seeking new space, contributing to 90% of aggregate take-up in the market. Demand scale of each individual occupier widely varies from below 100 sq. m. to above 3,000 sq. m., but more than 40% concentrates in the interval of 100-300 sq. m. The medium posts at 309 sq. m., but the average almost doubles to 683 sq. m., suggesting the significant contribution of large-scale demand (>3,000 sq. m.) though accounting only 2.6% of total occupiers.
- “Findings” session taps into the market’s characteristics, latest trends, as well as the puzzles and dilemma that haunted the industry for long. The report analyzes the key factors that determine the evolving landscape and performance of Chongqing office market, and narrows the scope into the underlying determinants as follows: geographic and demographic features, retail development, ownership and location of properties, among others.
- “Outlook” session finishes the report with the forecast from both supply and demand ends. CBRE proposes the recommendation of strategies to landlords and operators. Four trends are emerging or expected to see in the market:
- “Price War” – the diminishing effect in the office market
- Outsourced leasing management – the introduction of third party
- Co-working – a platform for entrepreneurship and Innovation
- Workplace 360 – the future of the office strategy
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