SHANGHAI--(BUSINESS WIRE)--A flood of new prime office supply in 2017 will have a significant impact on occupier markets in major Chinese cities, according to the 2017 Top Trends for China’s Occupier Market released by DTZ/Cushman & Wakefield, a global leader in commercial real estate services.
According to the report, DTZ/Cushman & Wakefield forecasts completion of a combined 5.8 million sq m of new prime office supply in 2017 across many of China’s major city-level Grade A office markets. The new supply will change the prime office market dynamics in these cities, placing extra competition pressure on office landlords but, at the same time, creating more location options and opportunities for office occupiers.
James Shepherd, DTZ/Cushman & Wakefield's Managing Director, Head of Research, Greater China said: “In Beijing, Lize Financial Business District should gain more attention thanks to 600,000 sq m of new supply set to be delivered by the end of 2017. Elsewhere, limited prime office space in the CBD of Guangzhou will entice occupiers to look across the Pearl River to Pazhou, which is expected to receive 280,000 sq m of new supply in 2017.”
Shaun Brodie, DTZ/Cushman & Wakefield’s Senior Director, Head of Occupier Research, Greater China commented: “2017 will continue to see the maturation of the prime office offering in many major city peripheral sub-markets in China. Given the expected lower office occupation costs and greater availability, these peripheral sub-markets will continue to attract a good number of companies looking to either decentralize from central CBDs or set up new headquarter offices or even a campus style offices.”
The report covers the Grade A office markets in China’s Tier-1 cities of Beijing, Shanghai, Shenzhen and Guangzhou, as well as Chengdu and Wuhan. Click here to download a copy of the report.
About DTZ/Cushman & Wakefield
Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop and live. The firm’s 43,000 employees in more than 60 countries provide deep local and global insights that create significant value for occupiers and investors around the world. In Greater China, the firm has a co-branded presence under the name of DTZ/Cushman & Wakefield and operates 20 offices in the region. Cushman & Wakefield is among the largest commercial real estate services firms with revenues of US$5 billion across core services of agency leasing, asset services, capital markets, facility services, global occupier services, investment & asset management, project management, tenant representation and valuation & advisory. To learn more, please visit www.dtzcushwake.com or follow us on WeChat (DTZ_China) and LinkedIn (https://www.linkedin.com/company/dtz-cushman-wakefield).