SINGAPORE, 27 May 2019 – Colliers International (NASDAQ: CIGI; TSX: CIGI), a global leader in commercial real estate services, today released the report Tech Jewels: Identifying the most attractive submarkets in Asian cities for TMT occupiers.
Tech Jewels builds on Colliers' earlier Top Locations: Technology (Sept 2018) and Changing Relations (May 2019) reports, providing tech occupiers with insights into the best sub-market locations based on existing tech clusters, availability of quality stock, accessibility and rent.
Andrew Haskins, Executive Director of Research, Asia, at Colliers commented: “TMT (technology, media and telecoms) groups have become a key driver of demand for office space. In our research, we use four simple metrics – existence of a tech cluster, availability of office stock, accessibility and cost of rent – to identify the top city submarkets for TMT groups. For large enterprises, these submarkets are typically CBD or CBD fringe locations, while smaller tenants often prefer business parks.”
Sam Harvey-Jones, Managing Director of Occupier Services, Asia, added: “This report is part of our tech thought leadership series offering actionable insights backed by robust data to help our TMT occupier clients determine optimal locations for their business needs and make well-informed decisions.”
Best submarkets for TMT groups
Besides the Outer Ring Road and CBD as our preferred submarkets, we see Whitefield and North Bengaluru as emerging areas with great promise due to the availability of quality office supply at competitive rents and improving infrastructure.
We recommend Shenton Way/Tanjong Pagar district, currently #1 in Singapore for TMT tenants and flexible workspace operators with excellent accessibility. City Hall and the Raffles Place / New Downtown area are also good locations with ample supply of quality office stock.
We recommend Hi-Tech Park Middle Zone followed by Hi-Tech Park South Zone which are both well-established tech clusters that offer great accessibility. Houhai is another high potential area with more quality office stock and excellent accessibility.
Zhongguancun still reigns as Beijing’s tech hub, but AGV & Olympic Park and Wangjing offer quality buildings and are growing tech clusters enjoying the same supportive policies and high accessibility.
the city has several attractive districts for TMT tenants. Our top preference is the Caohejing business park area. However, we also favour the Zhangjiang business park area and the Yangpu decentralised business district. All are tech clusters with ample availability of office space at reasonable rents and with easy access.
Causeway Bay, Quarry Bay and Cyberport are all located on Hong Kong Island which is optimal for attracting talent and enjoy a good supply of premium office space. Causeway Bay looks best for big tenants due to high space and accessibility, with Quarry Bay next, while Cyberport offers lower rents.
The city’s tech occupiers tend to congregate in the Shibuya/Ebisu district. This area is a major tech cluster and offers great access, albeit at high rent. Roppongi offers premium office facilities, quality residential areas, and high street F&B facilities, though also at high rent. Hamamatsu-cho/Tamachi is a good-value alternative location.
Click here to download
the Tech Jewels report.