Demand for Offices Increases in Special Economic Zone
Due to the record number of newly registered companies in the city mostly in the special economic zone of Qianhai saw to the increase in the demand for top level offices in the first half of the year.
Around 140,000 companies have established their roots in Shenzhen as the city reformed its business registration system with 90 percent of those companies are small and medium sized enterprises, thus driving up the demand for offices across the city. Enterprises that registered in Qianhai can afford to rent or purchase top level offices at the central business districts due to the support given by preferential government policies that led to the boom in the rental market as well.
The preferential tax policies offered by the special economic zone lured more than 1,000 companies to set up offices, but since there are no office buildings in Qianhai, these companies rented offices in Luohu and Futian districts instead. Thus resulting to more than 243,600 square meters of top level office were rented out in the first half of this year compared to the 101,000 square meters of offices that was rented last year.
But the increase in demand did not drive down vacancies since there was an adequate supply of offices. Furthermore other business in the IT and finance industry showed a stronger demand of such offices in Shenzhen. and as more companies are setting up offices in Qianhai the demand of top level offices will continue to grow in Shenzhen.