Shanghai office rents continue to lead mainland market

China's commercial real estate market witnessed positive growth and stable rents in the first quarter of 2011, according to a recent report on office and retail sales in the first quarter of 2011.　　Market demand for quality properties has been rising. High-latitude Global report pointed out that the first quarter of Shanghai high quality office leasing exuberant, the average effective net rent by the usable area reached 363 yuan/square meters/month, continue to lead the Chinese mainland office market.　　The limited high-end office space and a large number of high-end customers to expand the rental demand is to promote the Shanghai office rental price increase is an important factor, is expected to 2011 Shanghai Grade A office rental growth will reach 7%-10%. In Beijing, the average effective net rent of Grade A office space reaches 322 yuan/square meters/month. Another notable trend in Beijing's office market is the doubling of the demand for office space in domestic companies, which absorbs a large proportion of the market supply.　　From recent quarterly leasing transactions, domestic tenants began to higher rents and multinational companies to launch office leasing competition, compared with multinational companies, internal enterprises rent payment process faster, the bargaining power to improve. "The unprecedented urbanization process and sustained economic development in mainland China have not only provided strong demand for commercial real estate market, but also provided a more diversified and flexible strategic choice for the industrial layout and location of multinational companies in China and the Asia-Pacific region." Zhangliangjun, managing director of global China, said that on the one hand, the office market of the core cities such as Hong Kong, Shanghai and Beijing will continue its strong performance, on the other hand, the office market and industrial park around the core city will benefit, for relatively low-cost research and development facilities, data centers, Call center and other backstage offices provide realistic solutions.