The sluggish European economy is proving a boon for one business sector in China. According to The Executive Centre, Asia’s leading premium serviced office provider,the demand for serviced offices in China has been on the rise, following a flood of small-and-medium sized enterprises (SMEs) from Europe looking for new business opportunities in China.
The conventional office leasing market in China is slowing as multinational corporations adopt a more cautious approach to office expansion and increasingly witnessing high office rents in Central Business District locations. By contrast, the serviced office market in China has become one of the best-performing growth sectors in the commercial property market as SMEs look for flexible leasing terms, reduced operating costs and value-for-money services that will help them to establish their companies and start capitalising on business opportunities faster.
The China serviced office market has been on a steadily upswinging trend since 2005. Shanghai is currently ranked 11th worldwide in the provision of serviced offices and Beijing 26th. Serviced offices in Grade A and Premium buildings in CBD locations are reaching a monthly rate of RMB6,500 and up per workstation, according to a global serviced office market
report.
In today’s increasingly competitive and volatile global marketplace, companies are finding it hard to forecast their expansion pace over twelve months, let alone three to five years. Operating efficiency and fast response are the keys to sustaining a competitive edgeand serviced offices can provide the flexibility that companies need to adapt quickly to rapidly changing market conditions.
The Executive Centre offers an unmatched network of 17 serviced office centres across China in Beijing, Chengdu, Guangzhou,Shanghai, Shenzhen andTianjin. Fully furnished and well-equipped in prestigious, well-located office buildings, they enable companies to start business literally within moments upon arrival. The Executive Centre also offers a virtual office product which allows companies to establish a presence even before they are in place physically, and provides a wide range of corporate support and other professional services.
Paul Salnikow, CEO of The Executive Centre said, “China is now the key emerging market destination for European SMEs. At a time of ongoing global economic uncertainty, The Executive Centre is providing European SMEs with an extremely attractive business opportunity. Rather than investing long term in expensive office space with all the set-up costs and overheads, companies are turning to serviced offices like The Executive Centre, for a cost-effective, efficient and flexible solution. As we deliver the highest quality of accommodation with state-of-the-art communications, IT and other business support services, companies have virtually no set-up costs and can hit the ground running. Our prestigious locations also provide a high profile and successful image to the businesses in our centres which can be a key factor in establishing their credibility in a new market.”
Commenting on the expansion plans of The Executive Centre in China, Paul Salnikow said, “We are continuing to grow across both existing and new China markets. In the major cities such as Beijing, Shanghai and Guangzhou, we are planning to open one additional new centre each year. We are also expanding into second-tier cities such as Hangzhou and Shenyang which are moving into more service-based economies. For 2012, we expect to have over 50 centres in more than 20 cities across Asia, with further growth already confirmed for 2013.”
The sluggish European economy is proving a boon for one business sector in China. According to The Executive Centre, Asia’s leading premium serviced office provider,the demand for serviced offices in China has been on the rise, following a flood of small-and-medium sized enterprises (SMEs) from Europe looking for new business opportunities in China.
