new
or
You are here : Stone Home > Info Center > Financial News > Demand for CBD space is still healthy: official

Demand for CBD space is still healthy: official

Updated:2009-07-28 10:16:47

The global economic crisis has had little impact on Beijing's central business district (CBD), but limited space in the financial hub is hampering development, said officials.

Currently, 80 percent of office space in the CBD's 77 buildings is rented out and more than 90 percent of space in high-end buildings - including China World Trade Center and Fortune Plaza - is occupied, said Liu Chuncheng, executive deputy director of Beijing CBD Administration Committee.

Liu added that rents had not fallen in the CBD, which occupies 3.99 sq km near the city's East 3rd Ring Road.

The area is home to much of the city's finance, media and business services sector and was established by the government eight years ago.

Some reports pointed out that multinational companies, including Kodak and Motorola, had moved out in apparent cost-cutting measures with experts predicting the area's vacancy rate would rise to 40 percent this year.

However, Liu said the reports were inaccurate.

"Yes, some companies like Kodak and Motorola moved their offices out of a CBD building, but then they moved into another CBD buildings where the rent was cheaper," Liu said.

Wu Guiying, vice governor of Chaoyang district, where the CBD is located, said the financial crisis was having little impact. A shortage of land was more of a problem.

"It directly leads to congested traffic and a short supply of office space," she said.

The Beijing CBD Administration Committee said that in the first half of the year, more than 1,000 companies were registered in the area. Seven Fortune 500 companies, including Luxembourg-based steel giant ArcelorMittal, had set up offices there.

According to real estate management and consulting firm Savills, the A-grade office vacancy rate in Beijing was 19.4 percent in the first quarter, up 3.9 percent on last year.

Savills predicted that the vacancy rate would remain around 20 percent.


Source: China Daily

 

Premium Related Products
Sanbao Red
Sanbao Red
Price:Negotiation
Origin:GuangXi
Categories:Granite
Xiamen Newsource Stone Co.,Ltd
ChinaChina
G682 Tile
G682 Tile
Price:Negotiation
Origin:Fujian
Categories:Granite
Xiamen Five Brothers Stone Co., Ltd
ChinaChina
Tiger Skin Yellow
Tiger Skin Yellow
Price:Negotiation
Origin:Xiamen
Categories:Granite
Xiamen Newsource Stone Co.,Ltd
ChinaChina
Browse by: Stone Manufacturers | All Products | For Buyers | For Sellers | Suppliers | Stonebtb.com International | Stonebtb.com China | Site Map
About Us | Stonebtb Service | Contact Us | Our Partners | Video | Exchange Link | Terms of Use
Copyright 2007-2020 Stonebtb.com All rights seserced