Demand of High Grade Offices Up Due to Export Growth
This year Shenzhen’s exports returned to its fast track thus driving up the demand for top grade offices around the city and factory floors in the free trade areas. In the first two months this year, good exported totaled US$ 51 billion which is up 56 percent compared to the same period last year.
Because of this foreign trade and IT companies in the export hub gained back their confidence in profit growth, thus consequently led to the growth in the average rent in the city for grade A offices. Offices around Futian were the most sought after and rent for its grade A offices have increased to 1.5 percent due to the demand. While rent at factory floors in the city’s free trade zone went up 6.4 percent and growth rate point was at 1.6 percent higher. But since there was no new supply of top grade offices in the area vacancy dropped down by .3 percent in percentage points.
With the improving local economy, rent from grade A offices in Shenzhen will continue to grow for the rest of the year while the city will be adding 460,000 square meters of new offices put up into the market. For factory floors, vacancy rates will still drop but rent is pretty much stays stable for the rest of the year.