Sec­ond-tier cities see over­sup­ply of of­fice space

China Daily (Hong Kong) - - BUSINESS / DIGEST -

China’s sec­ond-tier cities have an over­sup­ply of of­fices, with com­pa­nies halt­ing ex­pan­sion amid a slow­down in the world’s sec­ond-big­gest econ­omy, ac­cord­ing to one of the coun­try’s big­gest com­mer­cial builders. “There are a lot of empty build­ings,” Zhang Xin, chief ex­ec­u­tive of­fi­cer of Soho China Ltd, said in an in­ter­view with Bloomberg Tele­vi­sion on Wed­nes­day. “Con­cen­trat­ing on cities such as Bei­jing and Shang­hai is less risky, but when we go to sec­ond- and third-tier cities, de­mand in­stantly de­clines.” Soho China is the big­gest de­vel­oper in Bei­jing’s cen­tral busi­ness dis­trict, where of­fice rents fell in the sec­ond quar­ter, the first de­cline in al­most four years, ac­cord­ing to prop­erty bro­ker Knight Frank LLP.

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