Office Decentralization in Mainland China - Cushman & Wakefield

Office Decentralization in Mainland China

The growing decentralizing trend of the office selection process has manifested in recent years. Some Fortune 500 firms have started to move from core to non-core submarkets. In 2012, the leasing transactions of Beijing’s non-core submarkets reached a historic high. The expansion of urban construction has led to the emergence of multiple attractive emerging submarkets in Shanghai as well. Though decentralizing office selection has mostly spurred tenants in industries that are more sensitive to occupancy cost and with large space demands—such as logistics, warehousing, manufacturing, hi-tech, and research and development centers—to relocate, financial and professional services also tend to locate supporting departments, including call centers and other back-up functions, to non-core submarkets.