While Beijing and Shanghai remain the top choices for multinational companies setting up head offices on the mainland, the market in Guangzhou is making headway with more grade-A office space in the Pearl River New City central business district.
The expansion of urban development in Guangzhou has seen the strategic development of new city centres, spreading the demand placed on ever-growing infrastructure. The local government has built new metro lines and is upgrading highways and roads in anticipation of the growing economy.
Major developments have taken place in the mouth of the Pearl River Delta, focusing on culture, recreation and sports. The central business district of Pearl River New City is being formed in addition to Tianhe North, both in the Tianhe district, an emerging business centre that was nothing more than a cluster of villages and farms about 10 years ago.
The combination of location, accessibility and facilities has seen the convergence of grade-A commercial and office buildings, including Guangzhou International Finance Centre (GZIFC), OneLink Walk and Canton Tower, which all opened last year. Taikoo Hui, GT Land Plaza and Pearl River Tower are expected to be completed this year.
New tenants account for much of the new office space, with the net absorption rate reaching nearly 200,000 square metres in the first quarter of this year, about half the figure achieved last year, according to Jones Lang LaSalle.
Pearl River New City, covering 6.5 square kilometres, is the largest central business district built on the mainland, playing the same role as Pudong in Shanghai. It is designed to serve not only Guangzhou, but also the whole of southern China.
