Chinese technology firms’ demand for office, research space surges as Beijing pushes for greater self-reliance amid US tensions
- Investment in office space, research facilities in technology parks topped US$2.25 billion in first quarter, an all-time high
- Active technology, media and telecoms companies in the office market show the government’s incentives have taken effect, analyst says
China’s efforts to enhance its technological strength have resulted in surging demand for technology districts, according to real estate services firm CBRE.
Investment in office space and research facilities in China’s technology parks topped 14.5 billion yuan (US$2.25 billion) in the first quarter of this year, hitting an all-time high.
“The investment spree was a result of the central government’s guidance,” said Sam Xie, CBRE China’s head of research. “As the state leadership urges innovations in technology, demand for office space slated for technology firms is rising sharply.”
Tensions between the US and China since 2018 have led to a technology war between the countries, the world’s two largest economies. Washington has blacklisted more than 100 Chinese companies on national security grounds, cutting access to American technology. This has prompted Beijing to develop the country’s own Microsofts and Apples to cut reliance on American technological know-how.
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In the January to March period, technology, media and telecoms (TMT) companies made up 42 per cent of China’s total newly leased office space, up from 35 per cent in the previous quarter, CBRE data shows. TMT’s share of the total nationwide leased office space jumped to 35 per cent at the end of 2020, from 18 per cent in 2018, CBRE said.
