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Small offices: a magnet for investors
25/11/2004 17:36

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.