Wendy Zhang/ Shanghai Daily news
A growing number of mid and small-sized companies have driven up the demand
for small office spaces, today' Youth Post reported.
Their numbers have
increased in China by nearly 50,000 each year, so that buildings with small
office spaces are proving very popular. For the first half of this year, office
space supply declined from a year earlier, while market demand far exceeded
supply.
Small office space usually costs three to six yuan (US$0.36-0.72)
per square meter in property management fees, while Class-A office space is
20-30 yuan per square meter.
Cheaper costs are one of the key factors in
attracting investors, said an industry analyst.
However, there are risks in
investing in small office spaces, he pointed out. Small office leaseholders are
usually small companies in their start-up period, and they will frequently move
from one place to another, he explained, adding that in real estate sector,
investing in office building market has the highest risks.