COLLIERS RADAR OFFICE | RESEARCH | CHENGDU | 10 FEB 2020 Donna Zhang Senior Manager | Research | West China +86 28 8658 6288
[email protected] POISED TO OVERTAKE A study on Tianfu’s emerging office market COLLIERS RADAR OFFICE | RESEARCH | CHENGDU | 10 FEB 2020 Chart 1: Review the development path of the Hi-tech Zone (2005 - 2016) Summary & Recommendations Phase > Tianfu New Area’s development, as a new sub-provincial district under the Tianfu Software Park offers favorable jurisdiction of Sichuan province and the 1 policies attracting numerous TMT, 11th new district in China nationwide (2005- software and Forbes Global 500 since 2014, is attracting a lot of 2015) enterprises to settle, supporting the attention for its development and development of an industry investment opportunities. aggregation. > This report focuses on the office market, and with our market forecast and characteristics of office demand in Phase After relocation of government and Tianfu we hope to provide valuable state-owned enterprises’ solutions for investors and developers headquarters to Hi-tech Zone, we interested in these opportunities. 2 expect their subsidiaries, other > Our recommendations for market- (2008- functional institutions and supporting satisfying office projects in the Tianfu 2012) private enterprises to relocate. New Area include: − During the early leasing stage, from 2020 to 2022, the core competitive advantage in Tianfu will likely be cost performance. Phase From 2012 onward, with a more mature − Developers need to offer office market and supporting facilities, differentiated products such as 3 we witnessed office-for-lease projects longer than market-average free (2010- enjoy greater demand, furthering the rent periods and customized industrial agglomeration effect.