Bejing's central business district. (Photo/Xinhua)
The Central Business District in Beijing has faced a structural change of its tenants. International big brand companies, including Intel, HP, and Oracle, have suspended their tenancy in the district and choose somewhere else to relocate their offices in the past year, reports Guangzhou-based monthly magazine 21st Century Business Review.
In 2012, housing vacancy rates in Beijing's Grade A office buildings reached the bottom while their rent has climbed by 20%. Rent in Shanghai's CBD in the same period has risen only nearly 3% and that in Hong Kong has dropped.
Manufacturing industries are more likely to move their offices out of the district because they are sensitive to the cost whereas industries that provide services including information, logistics and finance make up the main tenants in the district.
Many companies have moved their offices out of the district probably due to pessimism toward China's and the global economy. Some tenants have taken a conservative stance in the third quarter, and their resistance against high rent has surfaced.
Nevertheless, some other enterprises are still looking for high-end offices. A survey shows that vacancy rate of Grade A office buildings in Beijing has come down to about 3%, the lowest in history, and that in Beijing's CBD has dropped to 6%, much lower than the 30% in 2008. The gloomy economy does not seem to bring impact to the companies that set their offices in CBD.
The magazine also points out the growth of rent in Beijing's CBD is expected to go slowly in the future after two-year's boost. Industries of professional services, technology, and finance will still be main tenants in the district and demand for industries of culture, creativity, and health care is expected to increase. The rent is not likely to drop.