Delta office boom looms
The total grade-A office stock in the Greater Pearl River Delta will reach 22.2 million square meters in 2020, up by 64 percent from 13.5 million sq m in 2015, a report by property consultancy CBRE showed yesterday.
Marcos Chan Kam-ping, head of research at CBRE, said infrastructure schemes in the delta will form various one-hour commuting circles, boosting the flow of capital, people, goods and services.
Thanks to high-speed rail links, it will take just 14 minutes to reach Shenzhen Futian and 48 minutes to reach Guangzhou South.
As a result, it will enhance the feasibility of corporations in Hong Kong relocating some of their middle or back office operations to the delta, expediting two-way labor mobility.
CBRE estimates that the grade- A office stock in Hong Kong in 2020 will reach 7.6 million sq m, up 11.8 percent from 2015.
CBRE believes this is far from sufficient to cater to the long-term demand as more mainland corporations expand to Hong Kong.
In contrast, the Grade-A office stock in Guangzhou and Shenzhen combined will see a 2.2-fold growth from 6.7 million sq m in 2015 to 14.6 million sq m in 2020.
Source: The Standard