(The 3rd CIIE) Dialogue with the President of CB Richard Ellis China: The office market is a "barometer" of China's economic transformation to technology

　　China News Agency, Shanghai, November 8th (Reporter Xia Bin) The first exhibition of new products and the application of new technologies, the China International Import Expo has become a major technological innovation show for enterprises from all over the world.

Li Ling, President of CB Richard Ellis China, said in an exclusive interview with a reporter from China News Agency during the third CIIE that the office market is a "barometer" of the economy and can reflect the economic cycle and structural change trends. The current technology industry is China The number one industry in demand for office buildings is in full compliance with the trend of China's economic transformation towards technological innovation.

　　As a multinational company in the field of commercial real estate services and investment, CB Richard Ellis started its business in Mainland China in 1988 and has now spread to more than 100 cities.

Li Ling pointed out that his research team has conducted in-depth research on China's office leasing transactions in recent years and found that, especially in core office markets such as Beijing, Shanghai, Guangzhou and Shenzhen, one of the most obvious trends can be seen, that is, the proportion of technology companies is rapidly increasing, and first-tier and second-tier cities There are similar trends.

　　"In 2018, the technology industry accounted for 18% of office space leasing transactions, and it increased to 27% in 2019. This proportion has further increased to 31% in the first three quarters of this year, and it is still increasing." Li Ling also said, The rapid development of China's technology industry means that there is a huge demand for talents. Many technology customers have reported to us that the recruitment and space demand budgets they have made are not enough after just a few months because the development speed is too fast.

　　The effect of China's financial industry's continued opening up to the outside world is also gradually showing up in the demand for office buildings.

Li Ling mentioned that finance is another industry that has increased the proportion of office space leased. The demand for the financial industry has increased from 20% in 2018 to 24% this year.

"Especially this year, with the accelerated opening of the financial industry, we have indeed helped many foreign financial institutions in Shanghai and Beijing to expand their leases, and their demand is still rising."

　　The negative impact of the epidemic has put business problems before many companies, and rental costs are a huge burden.

Li Ling said that this year’s epidemic has indeed had a significant impact on various commercial activities and commercial real estate activities in the short term, especially in the first quarter of the leasing market, especially the office building leasing market and commercial leasing market. Some companies and merchants withdrew their leases, and some Institutional investors are also showing wait-and-see sentiment.

　　"However, as the domestic epidemic was quickly brought under control in the second quarter, everyone has also seen China's economy rebounded strongly for two consecutive quarters. Since the second quarter, the vitality of the commercial real estate market is reappearing." Li Ling said bluntly, especially in the third quarter. The leasing demand for logistics and warehousing and business parks exceeded that of the same period last year. Demand for office buildings rose 19% year-on-year, and logistics and warehousing rose 53%. Business parks in Beijing and Shanghai grew even more strongly, reaching 112%.

　　At the same time, the demand of many shopping malls and shopping centers has also turned from negative to positive.

Li Ling said that in the commercial real estate investment market, transactions in the third quarter increased by 9% from the previous quarter. “We have seen institutional investors’ confidence and activity have been picking up, including both international and domestic. Some investment clients who previously stayed abroad due to the epidemic, They all returned to China one after another."

　　In Li Ling's view, the resilience and growth of China's economy have been verified again in this epidemic. As institutional investors, everyone does not want to miss such a very good cyclical opportunity to invest in China.

He believes that China's commercial real estate market is expected to usher in a full recovery and rebound in 2021.

　　This year is the first time CB Richard Ellis has participated in the CIIE. Will you come next year?

"This is very certain, and it will definitely come." Li Ling firmly stated: CB Richard Ellis is increasingly aware that the CIIE not only promotes trade, but also actively drives investment; it not only provides commodity import opportunities, but also helps companies obtain services.

The CIIE can help commercial real estate professional service companies expand their business and upgrade their brands, and it also provides a good opportunity to further promote localization strategies in China.

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