Hong Kong, 6 March 2018 – Colliers International (NASDAQ and TSX: CIGI) has released the latest Flash Report highlighting Shenzhen’s economic development and office trends in the past year. The report, which is part of a Greater Bay Area research series, looks at Shenzhen’s focus on innovation and technology (I&T), and how this has helped the city rise to become China’s third largest in terms of GDP. Last year, Shenzhen’s GDP surpassed Hong Kong’s, exceeding the RMB2.2 trillion (USD350 billion) mark for the first time.
The report also centers on Shenzhen’s successful evolution from a manufacturing hub to a leading I&T centre in Asia, with sectors focusing on new generation IT, internet, environmental protection, and aviation. Daniel Shih, Director of Research and Advisory, comments: “Shenzhen has the strongest economic growth momentum among all cities within the Greater Bay Area supported by the I&T sector. In addition, we expect sustaining growing activities for Shenzhen’s office leasing market with the expansion of local companies to continue while more MNCs continue to enter Shenzhen. For 2018-2021, we predict that office rent for core districts will increase between 3%-8% per annum”.
The report underlines the impact that I&T will have on the office market in the city as it shifts from manufacturing to high value service industries, and how Shenzhen’s office leasing market has diversified to include other emerging sectors.
Internet technology companies such as Apple and Google have entered Shenzhen, and flexible workspace operators such as WeWork and SOHO3Q have been active in the city amongst a strong start-up community. Multinational companies and professional services such as Ipsos and Ogilvy have also started moving into Shenzhen to better connect with their clients. This all demonstrates a growing demand for office space in the city. Shenzhen’s overall net take-up already exceeds 10.76 million sq. ft. (1 million sq. m), 300% higher than the average net take-up for the past 10 years.