高力国际-创新增长引擎：亚太科技中心如何重塑区域房地产（英）-15正式版

Research|AsiaPacificGrowthenginesofinnovation:HowAsiaPacific’stechnologyhubsarereshapingregionalrealestateJune2021Introduction:ContentsBraceforimpact:technologyandtherealestatetrajectoryExecutivesummaryToday,technologyisthemostimportantbusinesssectorglobally.Thisfast-growingsectormakesup65%oftheworld’stop20publiccompaniesbymarketcapitalisation.1.Theunstoppableriseoftechnology2.Marketprofiles•Shanghai•BeijingTheongoingexpansionandinnovationofthetechnologysectorinAPACisfuellingnewpossibilitiesforoccupiersandownersalike.Infact,technologycompaniesarenowthemajordriverofofficeleasingdemandinAsiaPacific(APAC),possiblyaccountingfor20%to25%ofdemandforleasedofficespaceintheregionoverthenextfiveyears.Thisreporthighlightswheretheopportunitieswillbeconcentratedandoutlinesthestrategiesforbothownersandoccupierstoharnesschangingdynamicstoservetheirbusinessgoals.•Bengaluru•Shenzhen•Singapore•Hyderabad•SeoulTheimportanceoftechnologycompaniesasasourceofleasingdemandisonlysettorise.BesideshighrealGDPgrowthbyglobalstandards,manyAPACcountriesbenefitfromincreasingurbanisation,highgovernmentinvestmentinR&Dandrisinginternetpenetration–agoodmixfortechnologycompanies.•Sydney•Taipei•ManilaIfyouareviewingfromChina,clickheretowatchthevideoatYoukuInthisreport,weprovideanewrankingofthemostattractiveestablishedandupcomingtechnologysubmarketswithinmajorAPACcities.Thiscanserveasaguidefortechnologyoccupiersastheyplanexpansion.Sincewell-rankedtechnologysubmarketsoughttoattractstrongoccupierdemand,propertyownersshouldalsofocusonthesedistrictsforfutureinvestmentanddevelopmentopportunities.•HongKongSAR•Tokyo•Auckland3.ShiftingstrategiesAppendixWealsooutlineopportunitiesforpropertyownersbeyondrentalgrowthasthetechnologysectorincreasinglybecomesadirectinvestorinAPACrealestate.Indeed,technologycompanies–especiallyChinesefirms–areemergingasamajornewclassofowner-occupier.Thiscreatesanalternativesourceofcapitalforinvestorsconsideringassetdisposals,togetherwithnewopportunitiesforjointventuresandpartnershipsfordevelopers.Allthisaddstothepictureofanindustrythatistransformingnotjustlives,butrealestatemarketsthroughouttheregion.Allinformationinthisreportasof22June202123Top10establishedtechnologysubmarketsinAPAC,withscoresTop10upcomingtechnologysubmarketsinAPAC,withscoresExecutivesummaryBeijingShangdiWangjing-JiuxianqiaoZhongguancunNo.13.13.4ThetechnologysectoristhekeydriverofofficeleasingdemandinAPAC.BeijingShangdiShanghaiYangpuEstablishedtechnologysubmarketsUpcomingtechnologysubmarketsShanghaiStock1.5Stock0.8Rent37.4Rent34.6ShenzhenZhangjiangCaohejingSupply0.8Supply—NanshanBengaluru2No.3.32.7OuterRingRoad•WeseeShanghai,Beijing,Bengaluru,ShenzhenandSingaporeasthetopfivetechnologycentresinAPAC,offeringacompellingbalanceofinfrastructureandtalentforoccupiers,andwell-positionedtodeliverfuturegrowthandinvestmentopportunitiesforowners.Thestatusofthesecitiesreflectstheirlargetechnologyworkforces,famousuniversitieswithasciencefocusandrobustinvestmentinresearchanddevelopment(R&D).ShanghaiCaohejingShenzhenQianhaiStock2.0Stock0.6Rent32.9Rent34.8Hyderabad

SingaporeSupply0.9Supply1.6HITECCityShentonWay/No.No.3TanjongPagarCityHall3.32.7ShanghaiZhangjiangBengaluruWhitefieldStock1.9Stock2.7Rent31.1Rent10.8Supply0.8Supplyꢀ0.843.22.6BeijingBengaluruNorthꢀBengaluruWangjing-Stock0.6Stock0.5jiuxianqiaoRent57.7Rent10.2Supply0.3Supplyꢀ0.8••However,otherAPACcitiesaredevelopingstrengthsinspecificareasoftechnology,e.g.SeoulandHongKonginfintech.Meanwhile,newtechnologycentresareemergingsuchasHyderabadandSydney–whichdeservecloseattention.No.No.563.02.3ShanghaiBeijingHyderabadZhongguancunStock0.5Stock0.2PeripheralBusinessYangpuRent83.1Rent7.7DistrictSupply0.2Supply1.32.82.1SydneyCBDSouthBengaluruOuterRingStock5.0Stock0.4Rent16.9Rent56.1RoadBasedonanewmethodology,thisreportranksthetop10establishedtechnologysubmarkets(wheretechnologyoccupancycurrentlyexceeds15%oftotalofficespace)andtop10upcomingtechnologysubmarkets(whereweexpecttechnologyoccupancytoexceed15%ofofficespaceoverthenextfiveyears)withinmajorAPACcities,whichoccupiersshouldtargetforexpansion.Supply1.1Supply0.1BengaluruNo.72.0WhitefieldNorthBengaluru2.7DelhiNCRNoidaExpresswayShenzhenNanshanStock1.3Stock1.8Rent45.2Rent9.7HyderabadSupply2.1Supply0.689PeripheralBusinessDistrictNo.No.2.42.0SingaporeDelhiNCRShentonWay/Stock0.4Stock0.7GolfCourseExtensionTanjongPagarRent80.1Rent11.7Road,GurugramSupply0.1Supply0.32.42.0•Amongtheestablishedsubmarkets,wehighlightShangdiinBeijing.Forupcomingsubmarkets,wehighlightYangpuinShanghai,togetherwithWhitefieldandNorthBengaluruinBengaluru.AnotherupcomingsubmarketdeservingmentionisSydney’sCBDSouth.ManilaQuezonCitySingaporeShenzhenCityHallStock0.5Stock1.0Rent79.0Rent15.4QianhaiSupply—Supply0.1No.10DelhiNCRSydneyManila2.42.0NoidaExpresswayCBDSouthQuezonCityManilaBayAreaHyderabadManilaManilaBayAreaGolfCourseExtensionRoad,SuburbanStock3.4Stock0.4GurugramRent13.0Rent15.7BusinessDistrict-Supply1.2Supply0.2HITECCityLegend:Scores:Scoresoutof5inColliers’technologylocationranking;Stock:Totalofficestockinmillionsofsqmetres;Rent:MonthlyNFArent(US$persquaremetre);Supply:Cumulativesupply(2021–2025)inmillionsofsqmetres.4Rentrising<>RentstableKeyrecommendationsforoccupiersKeyrecommendationsforowners“ThetechnologysectoristhekeydriverofofficeleasingdemandinmajorAPACcities.WhiledemandfromMNCtechnologyoccupiersremainsimportant,weexpectAPACtechnologyoccupierstopredominantlydrivedemandandshape“Beijing,ShanghaiandShenzhenarealltoptechnologycentresinChinaandAPAC.Beijing’stechnologyoccupiersInplanningtheirexpansion,werecommendthattechnologyoccupiersexploreupcomingsubmarkets,andalsopaycloseattentiontotheinfrastructureandpolicyenvironmentintheselocations.ThefollowingareidentifiedtechnologysubmarketsandstrategiesinAPAC:•Concentrateonattractiveupcomingsubmarketsformedium-termgrowthprospects.Whiletraditionaltechnologyclusters,suchasPangyoinSeoulandBeijing’sZhongguancunwillremainvibrant,weseegreatergrowthpotentialinfringeorupcomingdistrictsasexpansion,infrastructureimprovementsand,insomecases,governmentincentivesencouragetechcompaniestoexplorenewlocations.shouldlookattheBeijing••Thetechsectorwillcreateopportunitiesbeyondrentalgrowth.Whiletheprimaryexpansionstrategyofmultinationaltechnologygroupsremainsleasing,largeAsian–especiallyChinese–technologyfirmshavebecomeveryactiveindirectinvestmentanddevelopment.ShangdiandBeiqingRoadareasasideallocationsforexpansion,whileassetownersintheseareasarewell-positionedtobenefitfromtheexpansionplansofthesefirms.Shanghai’sYangpuareaandShenzhen’sQianhaiareaareotherideallocationsofferingopportunitieswhichbothoccupiersandownersshouldexploit.”FocusontheShangdiandBeiqingRoadareas,northwestofbetter-knownZhongguancun,tobenefitfromhigh-qualitynewbuildingsandaffordablerents.ShanghaiIn2020,technologycompaniesacquirednearlyUSD10billionofrealestateassetsinAPAC,upfivefoldfrom2016.Surprisingly,Asiantechnologycompanieshavefavoureddevelopmentsitesovercompletedassets,suggestingtheyareplanningforthelongterm.Theyareemergingasanewclassofowner-occupierwithlargepropertyportfolios.ExploreYangpuasanalternativetoCaohejingandZhangjiang,duetoitsgrowingreputationasanentrepreneurialhub.majorofficemarketsoverthenextfiveyears.”ShenzhenConsiderQianhaiforexpansion,giventheoversupplyofspaceandgovernmentincentives.SamHarveyJonesManagingDirector|AsiaOccupierServices••Developersandinvestorsneedtorespondtotherequirementsoftechnologygroups,whichseekredevelopmentorconversionopportunitiesforbuilt-to-suitofficespace,aswellaslandbankstorolloutlogisticsanddatacentreplatforms.SingaporeWithsupplytighteningandthelackofrealclusters,occupiersinSingaporeshouldlockinspaceasandwhenitappearsinpreferredlocations.Specifically,werecommendthat:Bengaluru•Investorsconsidertechnologycompaniesasalternativebuyersofagingassets;theycanalsoseekpartnershipswithtechnologyfirmstoredeveloptheirassetswithaclearexitoncedevelopmentiscompleted.Evaluatecommutingchallengesandtransportlinksbeforerelocating.ConsiderNorthBengaluruforexpansionasinfrastructureimprovesandspacebecomesavailableandalsoduetoitsproximitytotheairport.TammyTangManagingDirector|China•Ownerswithlandbanksanddevelopmentcapabilitiesinareaslikelogisticswarehousingordatacentresconsiderjointventureswithtechnologycompaniestodeveloptheseassetstomeettheirpartners’requirements.Theseventurescanbeone-offdevelopmentsorongoingpartnershipsspanningmultipleprojects.HyderabadConsidertheOff-SBDandPeripheralBusinessDistricts,whichofferastrongpipelineofofficespacefromreputeddevelopersandlandforbuilt-to-suitfacilities.•Investorswithpassivecapitallookoutforopportunitiesinrealestatefundssetupbytechnologycompaniesthatareopentothird-partyinvestment.SydneyTheemergenceofCBDSouthasanewtechnologyhubandtheresultantnewdevelopmentswillgivetechnologyoccupiersthechancetopre-committonext-generationofficespacetoattractandretaintalent.PropertyacquisitionsbytechnologyfirmsinAPAC(USDbillions)Manila108FocusontheManilaBayAreaandQuezonCity,whichshouldincreaseinpopularityduetolowerrentsandsupplyofqualityPEZA-accreditedspace.6420SeoulConsiderSeongsu-dong,GuroandGwacheonforexpansion,giventhepaucityofspacewithintheestablishedGBDandPangyoclusters.Source:RCA671.Theunstoppableriseoftechnology“WithinAsiaPacific,weareseeingSydney’sSouthCBDquicklyemergingasanewtechnologyhub.Thenewdevelopmentsarisingfromthatwillenabletechnologyoccupierstopre-committothenextgenerationofofficespacetoattractandretaintalentintheindustry.”Thetechnologysectorrepresents65%oftheworld’stop20publiccompaniesbymarketcapitalisationasatMay2021.Furthermore,Asiantechnologycompaniesaregrowinginimportance:theChineseinternetande-commercegiantsTencentandAlibabarankamongthosetop20,asdoTSMC,theTaiwanesesemiconductorproducer,andSamsung,theSouthKoreantechnologyconglomerate.SimonHuntManagingDirector|AustraliaOfficeLeasingWehaveevaluated16citiesandatotalof37establishedandupcomingtechnologyclustersacrossAPAC.Ourclusterdefinitionisbasedontheproportionoftechnologyoccupiersasapercentageoftotalstockineachsubmarket,asfollows:••Establishedtechnologyclusterscurrentlyhave15%ormoretechnologyoccupiersUpcomingtechnologyclusterswillhave15%ormoretechnologyoccupiersoverthenextfiveyearsToscoreandrankthetechnologysubmarkets,wehaveevaluatedthestrengthofthetechnologysectorandthesocioeconomicfactorsatacitylevelandthepropertysectoratasubmarketlevel.DetailsofthemethodologyandasummaryofallthetechnologyclusterscanbefoundintheAppendix.2.MarketprofilesTop20publiccompaniesbymarketcapitalisation(USDbillions,May2021,techcompaniesindarkblue)WewilltakeacloserlookatsomeofthekeytechnologysubmarketsinthemajorAPACcities,theircharacteristics,thesegmentsofthetechnologymarketinwhichtheyarestrong,andtheirgrowthprospectsnext.2,0001,5001,0005000Source:Bloomberg,/89KeytechsubsectorsSemiconductors,SaaS,InternetUpcomingtechsubsectorsKeytechsubsectorsInternet,Software,ITservices,TelecomsUpcomingtechsubsectorsHomeHomeSmartmanufacturing,AI,FintechAIandroboticsShanghaiBeijingFromfinancialhubtotechstandoutAtopsourceoftechnologytalentTop3OccupiersTop3OccupiersCaohejingYangpuZhangjiang1.SMICZhongguancunShangdiWangjing-Jiuxanqiao1.Tencent1.ByteDance2.BiliBili1.ByteDance2.Tencent3.JD1.Kuaishou2.Baidu1.Meituan2.Alibaba3.3602.ByteDance3.Sensetime2.JiangsuHengruiPharmaceuticals3.BaiduShanghaiauthoritieshavemadecleartheirambitiontotransformthecityintoasciencecentre,whilethecity’sfinancialandtechnologyaspirationshaveconvergedwiththelaunchoftheShanghaiStockExchange’sStarMarketinJuly2019targetedatstartupenterprises.TheYangtzeRiverDeltaaroundShanghaiisthemostdevelopedsemiconductorregioninChina,withstrengthinproduction,chipdesignandassembly,testingandpackaging.Shanghaihasbecomewellknownforitssoftware-as-a-service(SaaS)sector,hometosome400companies.WeseeShanghaibuildingonitsexistingstrengthsinsemiconductors,whilethecity’scommercialdominanceBeijinghasconsistentlyinvestedinR&D,withspendingaveragingmorethan5.5%ofGDPfrom2015to2019.Theneweconomy,focusedontechnology,accountsforabout38%ofthecity’sGDP,andthisproportionshouldcontinuetogrow.Well-knownlargetechnologygroupswithheadquartersinthecityincludetheinternetenterprisesByteDanceandBaidu,andthee-commerceplatformMeituan,aswellasthethreemajorChinesetelecomsoperators(ChinaMobile,ChinaTelecomandChinaUnicom).ManytechnologyoccupierspreferbusinessparksinBeijing,duetolowerrentsthaninconventionalCBDofficespace.3.Dell-EMC3.TencentYangpuShangdiWangjing-ZhongguancunJiuxianqiaoCaohejingZhangjiangSpacecomposition:APACvs.MNCtechSpacecomposition:APACvs.MNCtech30%40%MNCMNC70%EstablishedmarketUpcomingmarket60%EstablishedmarketUpcomingmarketAPACAPACKeymarketinfoAggregate7,097,39220.9%Caohejing2,022,68218.6%ZhangjiangYangpu774,62524.8%NAKeymarketinfoAggregateZhongguancunShangdiWangjing-JiuxianqiaoTotalstock(sqmetres)Vacancy(%)1,933,00916.8%821,17131.1Totalstock(sqmetres)Vacancy(%)3,958,6179.7%539,0011,547,923596,2327.7%3.9%249,63183.17.0%785,59637.4Supply(sqmetres,’21–25)Avgmonthlyrent(USD/sqmetres)5-yearrentgrowth(p.a.)2,621,71229.4875,09432.9Supply(sqmetres,’21–25)Avgmonthlyrent(USD/sqmetres)5-yearrentgrowth(p.a.)1,623,80845.9319,90057.734.6Realestate&workplaceconsiderationsshouldaiditsplanstodevelopsmartmanufacturingandAI,aswellasfintech.2.1%2.1%2.1%2.1%2.1%1.6%2.9%2.1%•Assetownersareincorporatingtechnologysuchasfacialrecognitioninbuildings.Realestate&workplaceconsiderationsTechoccupiertypesOperationsBuildingtypesPropertycycleTechoccupiertypesOperationsBuildingtypesPropertycycle•Withmanytechnologyoccupiersneeding24-houroperations,assetownersareadoptingvariableairvolume(VAV)HVACfacilitiestosupporttenantrequirements.•Traditionallytechnologyoccupiersallocated7to9squaremetresperpersoninBeijing,weexpectthistoincreaseoverthemedium-term.EstablishedtechnologysubmarketsEstablishedtechnologysubmarketsOffices&hi-techmanufacturingPredominantlyinternet-basedEstablishedBusiness&ITparksTenant-friendlyEstablishedGradeALandlord-friendly•Increasinglytechnologyoccupiersarecreatingenvironmentally-friendlyworkplacesthatsupportthehealthandwell-beingofemployees.Locatedinsouth-westShanghai,theCaohejingHigh-TechParkisarenowneddevelopmentthathosts3,600technologyenterprises.KeysectorsincludeInformationTechnology(IT),newmaterials,biopharmaceuticals,aerospace,environmentalprotection,newenergyandautomobileR&D.TheZhongguancuntechnologyhubisclosetoChina’stopuniversitiesandiswellknownasthebirthplaceofChina’sinternetindustry;ithasalsoquicklyemergedasahotspotforAIdevelopment.WeareseeinganorthwesterntechcorridordevelopfromZhongguancunto•Landlordsarealsoprovidingspaceforgeneratorsfortechnologyoccupiers.ShangdiandfurthertowardsBeiqingRoad.1Offices&hi-techmanufacturingOutlook&recommendationsEstablishedandupcomingOfficespaceandmanufacturingEstablishedBusiness&ITparksTenant-friendlyOutlook&recommendationsBusinessparksLandlord-friendly•DemandfromtheTMT(Technology,MediaandTelecoms)sectorshouldremainrobustoverthenextfiveyears.ZhangjiangHigh-TechIndustrialParkisakeytechnologysubmarketwithastrongmanufacturingbase.Ithas768high-techenterprisesand403technologycentresatthenational,municipalordistrictlevel,andhosts49regionalheadquartersofmulti-nationalcorporations(MNC)and138foreign-investedR&Dcentres.•TechnologyoccupiersexpandingtheiroperationsinBeijingshouldfocusonofficeswithintheShangdiandBeiqingRoadareastobenefitfromhigh-qualitynewbuildings,andaffordablerents.TheShangdisubmarkethostsacriticalmassoftechnologyoccupiersinBeijing,includinggiants,suchasTencentandBaidu.ThedevelopmentofShangdihasbenefitedfromthelarge-scalespilloverdemandfromZhongguancun.UpcomingtechnologysubmarketsEstablishedandupcomingInternetande-commerceGradeAoffice,Businessparks••Vacancyshoulddecreaseuntil2024,whenweexpectawaveofnewsupply.Landlord-friendlyEstablished&upcomingGradeAandBofficespaceWangjing-Jiuxianqiaocameintoprominenceaftertheglobalfinancialcrisisin2008.BuildingqualityishigherthaninthecaseofShangdiandtheupcomingBeiqingRoadcluster.Wangjingisanotherhotspotforinternetcompaniesafterthe4Gwavein2013.Office-basedTenant-friendlyForfurtherdetails,pleaseseeColliers’report:TechOccupiersCodeBeijing’sFutureTechnologyoccupiersshouldexploreYangpuasanalternativelocation,duetonewerstock,anditsgrowingreputationasanentrepreneurialhub.LocatedinthenortheasternpartofcentralShanghai,Yangpuistransformingintoahigh-techcentre.Hometomanyglobalandlocaltechnologyleaders,includingIBM,Oracle,andBaidu,Yangpubenefitsfromstrongeducationalinstitutionsthatprovidenotonlyasuperiortalentpoolbutalsoanentrepreneurialclimate.UpcomingtechnologysubmarketsEstablishedandrapidlyexpandingOfficespaceandmanufacturingBusinessparksTenant-friendlyBeiqingRoadliesinthenorthwesterncorridorandabsorbsspilloverdemandfromShangdi.Itmainlycompriseslargecampusfacilitiesinbusinessparks,andbenefitsfromthepolicyadvantagesoftheChina(Beijing)PilotFreeTradeZone.¹SeeXinhua(13December2020),/english/2020-12/13/c_139586396.htm1011KeytechsubsectorsUpcomingtechsubsectorsKeytechsubsectorsHardwaremanufacturing,InternetUpcomingtechsubsectorsCaptivecentres,BusinessprocessoutsourcingSaaS,Appdevelopment,Edtech(educationaltechnology),FintechHomeHome5Gmobile,Biotech,RoboticsBengaluruShenzhenLeadingIndiantechnologycentreChina’sinnovationengineTop3OccupiersTop3OccupiersOuterRingRoadWhitefield1.TCSNorthBengaluru1.IBMNanshanQianhai1.JD1.IBM1.Tencent2.OppoShenzhen’seconomywasoriginally2.Cognizant3.Nokia2.Capgemini3.SAP2.Cerner3.Shell2.Tuyabuiltonhardwaremanufacturing,anditremainsthesiteofthemainproductionfacilitiesofHuaweiandZTE,theChinesetelecomsequipmentproducers,aswellasFoxconn,theTaiwanesegroupthoughttobeChina’slargestprivatesectoremployer.Sincetheearly1990s,Bengaluruhasenjoyedaconsistentsupplyoftalent3.ByteDance3.CodemaoNanshanandhighavailabilityofofficespace.Duetochallengesincludingoverburdenedinfrastructureandlimitedvacancyinpreferredsubmarkets,suchastheOuterRingRoad(ORR),CentralBusinessDistrict(CBD)andSuburbanBusinessDistrict(SBD),weexpectofficedemandtoshifttotowardsWhitefield,wherequalitysupplyisavailableatcompetitiverents,withtheupcomingmetrorailcompletionsettofueldemandfurther.NorthBengaluruShenzhenBaySuperHQBaseWhitefieldQianhaiOuterRingRoadSpacecomposition:APACvs.MNCtechSpacecomposition:APACvs.MNCtechInaddition,Shenzhenandthe70%30%surroundingtownsremainhometosomeofthelargestproductionfacilitiesofFoxconn.However,highinvestmentinR&DhasbroadenedShenzhen’stechnologybase,andtodaythecityisequallywell-knownasoneofChina’sleadinginternetcentres.Notably,Tencent,Asia’sbiggesttechnologycompanybymarketvalue,hasitsheadquartersinShenzhen’sNanshandistrict.Shenzhencontinuestoinvestheavilyforfuturedevelopment.Itisaleaderin5Gmobile,whileotherfieldsofexpansionincludebiotechandrobotics.MNCMNC30%EstablishedmarketUpcomingmarket70%EstablishedmarketUpcomingmarketAPACAPACKeymarketinfoAggregateOuterRingRoadWhitefieldNorthBengaluruKeymarketinfoAggregateNanshanQianhai608,05644.2%Realestate&workplaceconsiderationsTotalstock(sqmetres)Vacancy(%)11,325,90511.6%4,962,2272,682,308456,35846.9%801,28910.2Totalstock(sqmetres)Vacancy(%)3,720,64821.0%1,316,33117.3%6.5%1,105,46716.919.9%827,76710.8•WithcaptivecentresandtheBPO(BusinessProcessOutsourcing)sectordominatingtheofficelandscapeinIndia,spaceperpersonhasfallenfrommorethan150squarefeetintheearlydaystoaround70to80squarefeettoday.Supply(sqmetres,’21–25)Avgmonthlyrent(USD/sqmetres)5-yearrentgrowth(p.a.)3,135,48114.7Supply(sqmetres,’21–25)Avgmonthlyrent(USD/sqmetres)5-yearrentgrowth(p.a.)4,119,36747.82,051,94245.21,570,88734.81.3%1.4%0.0%1.1%-0.3%-0.3%-0.3%TechoccupiertypesOperationsBuildingtypesPropertycycleTechoccupiertypesOperationsBuildingtypesPropertycycleRealestate&workplaceconsiderations••AfterCOVID-19,weexpectthisfiguretoincreaseandsettleinthe100to120squarefeetperpersonrange.EstablishedtechnologysubmarketsEstablishedtechnologysubmarkets•TheQianhaiauthorityiscurrentlyofferingtaxincentivestocompaniesseekingtorelocatetothedistrict.Besidescompanies,Qianhaiofferssubsidisedaccommodationandtransportationfacilitiestoattracttalentedstaff.GradeA,B,Business,andITparksToptechnologyandBPOoccupiersEstablishedandupcomingOfficesandmanufacturingGivenincreaseduseoftechnologywithintheworkplaceandamoreflexibleapproachfromcompanies,weexpect20%to25%oftheworkforcetobeabletoworkfromanywhereoverthemedium-to-longterm.OfficeoccupiersBusinessparksLandlord-friendlyTenant-friendlyTheORRistheepicentreofcommercialofficeleasinginBengaluru,accountingfor35%to40%ofBengaluru’stotalannualleasingvolume.ThisareahousesmajorMNCsandaccountsfor40%oftotalofficestock.Thetechnologysectormakesupabout60%ofNanshan’sGDPandisthemaindriverofofficedemand.WithinNanshan,Hi-TechParkMiddleandSouthZoneshavepredominantlybusinessparksthatarepopularwithbothupcomingandestablishedtechnologyoccupiers.Meanwhile,Houhaihasasteadypipelineofnewsupplythatispopularwithestablishedtechnologycompanies.Outlook&recommendationsOutlook&recommendationsSpecialeconomicUpcomingtechnologysubmarketsITandOfficeoccupierszonesandBalancedITeSoccupiersbusinesparks•DuetotheamplenewstockavailablewithinShenzhen’stechnologyclusters,occupierscantradeupfromtheirexistingpremises.•Trafficandaccessibilityduringpeakhoursareachallengeacrossmostofthecity.Thisrequiresoccupierstoevaluateresidentiallocations,commutingtimesanddistrict-leveltransportlinkswhendetermininglocationsforexpansion.EstablishedandupcomingPredominantlyGradeAThisisaself-reliant,establishedperipheralITdistrictwithseveralSpecialEconomicZonesandITparks.Reasonablerentsattractcompanieslookingtoscaleupandenjoycostarbitrage.OfficeoccupiersTenant-friendlyShenzhen’sGradeAofficedevelopmenthasbeenshiftingwestwardsoverthelastthreedecades.Today,QianhaihasestablisheditselfastheupcomingCBD.FinancialandtechnologysectoroccupiershaverelocatedorexpandedtheirfootprinttoQianhaitoobtaingovernmentincentivesandrentalsubsidies.•Withanoversupplyofspaceandgovernmentincentivesonoffer,technologyoccupiersneedinggoodqualityGradeAofficespaceshouldconsiderQianhaiforexpansion.Upcomingtechnologysubmarkets•Currently,NorthBengaluru(definedasthemicromarketsofHebbalandYelahanka)isnotatechnologycluster.However,werecommendthatoccupiersconsiderthislocationforexpansionandconsolidationasinfrastructureimprovesandofficestockbecomesavailable.Officeoccupiersandhigh-techlabsSEZsandbusinesparksOfficeoccupiersPredominantlyGradeAR&DfacilitiesBalancedEstablishedTenant-friendlyandHQsAftertheopeningofthenewairportinDevanahalliin2008,realestatedevelopmenthaspickedupinthenorthernbeltwithvariousITparksandplannedSpecialEconomicZonesupply.Connectivityisgood,butsocialinfrastructureisstillinthedevelopmentstage.NewsupplyoverfiveyearsishighestaftertheORR.TheShenzhenBaySuperHeadquarterBasehasplansfor24-houroperation,agreenbelt,culturalfacilities,andlow-densitylivingspace.Theareaisstillintheinitialstageofconstruction,with1.32millionsquaremetresofofficespacescheduledtobecompletedby2024.1213KeytechsubsectorsSocialmedia,Internet,MobilityUpcomingtechsubsectorsKeytechsubsectorsCaptivecentresandBPOsUpcomingtechsubsectorsHomeHomeFintech,High-techmanufacturingBiotech,AI,MachinelearningSingaporeHyderabadAbaseofchoiceforglobaltechnologygiantsDevelopment,supportivepolicyhelpIndia’ssecondtechcapitalTop3OccupiersTop3OccupiersShentonWay/TanjongPagar1.MicrosoftCityHallSBDOffSBDPBD1.Facebook2.Zoom1.Qualcomm2.ServiceNow3.Salesforce1.Amazon2.Google3.Cogn