1、China Office Leasing GuideShanghai|Hong Kong|Shenzhen|Beijing|Guangzhou|Chengdu Chongqing|Wuhan|Changsha|Nanjing|Zhengzhou|Hangzhou Xian|Suzhou|Tianjin|Shenyang|Ningbo|Wuxi|QingdaoJLLs Office Leasing Services2Summary and Prospect of Chinas Office Market 4Glance at Major Cities8Office Leasing Guide31

2、About JLL36Contents2JLLs Office Leasing ServicesBusiness Capabilities Nearly 190+office professionals to provide the most comprehensive market information and professional services Our professional areas including offices,industrial parks,business centers,and co-working spaces Over 236 years of glob

3、al real estate experience and best practices Strong relationships with landlords,tenants,and investors based on our extensive global,regional,and local business networks Winner of Best Deal of the Year in the RICS China Awards for three consecutive years One of the winners of Worlds Most Ethical Com

4、panies for 16 consecutive years(2008-2023)Core ServicesTenant RepresentationWhether your business is planning for a single office move or looking to purchase office space to meet a strategy for global expansion,you need a commercial real estate tenant representative with local market expertise at yo

5、ur service.Property Site Selection Property Search&Research Negotiation on Commercial Terms Lease/Purchase Strategy Adjustment Financial Analysis&Qualitative Analysis Lease/Purchase Strategy Evaluation and Master Plan:Area Increase/Decrease Office Relocation Property Integration Property Space Optim

6、izationProject LeasingCombining our international network with local knowledge,we can iden-tify and retain key tenants for you,determine optimal rent levels,tailor project leasing strategies to meet your business objectives,and maximize value for you.Strategic Project Planning Project Marketing&Prom

7、otion Leasing Agency Leasing ManagementOffice set-up or relocation is a complex,time-consuming,and labor-intensive process that can directly affect a companys business operations,making it crucial to choose a professional real estate consultant.We can provide one-stop office leasing services with ou

8、r sophistication and expertise in the commercial real estate sector.JLL Corporate Office(16)JLL Project Office(16)JLL Service Coverage(over 80 cities)LegendThis figure only serves as a schematic diagram.Harbin DalianChangsha TianjinBeijing QingdaoShanghai Fuzhou SuzhouNanjingNanning SanyaWuhan Guang

9、zhouGuangzhouShenzhenHong KongZhuhaiMacauChengduChongqing XianJinanShijiazhuangLuoyangTangshanShenyangChangchunJilinQinhuangdaoWeihaiYantaiHuaifangHuhhotLangfangOrdosTaiyuanXingtaiZhengzhouXiangfanYangzhouJurongHefeiChangzhouWuxiYanchengKunshanJiaxingShaoxingJinhuaWenzhouQuanzhouXiamenChaozhouShanto

10、uHeyuanShanweiJieyangZhongshanDongguanMeizhouShaoguanQingyuanZhaoqingYunfuYangjiangMaomingZhanjiangHaikouNanchangNantongKaifehgXuzhouLinyiHangzhouHainingHuzhouKunming ShundeFoshanXiningLanzhouMianyangDeyangGanziYaanMeishanGuangyuanZiyangZigongNeijiangLijiangLashaPanzhihuaLuzhouYibinBijiezhaotongKail

11、iGuiyangAnshunSuiningNanyunGuanganDazhouHanzhongYananWeinanUrumchiTaipeiHuizhouJLL Office Leasing Advisory,ChinaDominant Market ShareContact Person|years of professional experienceChina/Shanghai Anny Zhang|18 Hong Kong Alex Barnes|17Beijing Michelle Liu|18 Lu Bai|17Chengdu Hatti Deng|15Chongqing Kev

12、in Liu|13Guangzhou Victor Mar|28Hangzhou William You|17Nanjing Jerry Chen|12 Xian Joy He|11Qingdao Apple Qu|19Tianjin&Shenyang William Gao|16Shenzhen Alfred L|11Wuhan Liu Ning|272022 190+real estate experts 1,200+office leasing transactions completed 1,200,000+sqm rental spaceOffice business coverag

13、e32 corporate offices(including project offices)cover more than 80 cities nationwide.Market-leading leasing teams in Tier 1 citiesTop 1 in key tier 2 and tier 3 cities by market share 80%+in Qingdao/Jinan/Tianjin;60%+in Shenyang/Xian/Chongqing;50%+in Wuhan;40%+in Chengdu/Nanjing.Abundant resources i

14、n remote areasFor example,we have provided of-fice leasing service for EMC,Cisco,Philips,UTC,MSD,GE,Bayer,etc.in Urumqi3Ten Thousand sqm0.0200.0400.0600.0800.01000.01200.01400.01600.01800.02000.0Total stock in 2022New supply in 2023New supply in 2024WuxiQingdaoNingboTianjinShenyangZhengzhouSuzhouXia

15、nChangshaNanjingXiamenWuhanHangzhouChongqingChengduGuangzhouBeijingHong KongShenzhenShanghaiIn 1H2023,the stock of Grade A offices in 20 key cities including Hong Kong in China totaled 94.47 million sqm,mainly concentrated in tier 1 cities(Beijing,Shanghai,Guangzhou,Shenzhen and Hong Kong),which rec

16、orded 52.20million sqm.By the end of 2024,these 20 cities will contribute up to 14 million sqm of new offices,representing about 15%of the current stock.Shenzhen,Shanghai,Guangzhou,Hangzhou will be the main contributors.Chinas post-COVID reopening led a strong pickup in economic growth in early 2023

17、.While after accelerating for the first quarter,the 2Q23 recovery fell short of market expectations.Many companies adopted relatively conservative real estate strategies and remain sensitive to office leasing costs.This has to some extent hindered the pace of recovery in leasing demand.At the same t

18、ime,the pressure from new supply continues,further pushing up the vacancy rate in the market.Total Stock of Grade A Offices in Key CitiesChinas Office MarketSummary4-20.0%-15.0%-10.0%-5.0%0.0%5.0%10.0%15.0%20.0%-25.0-15.0-5.05.015.025.0Hong KongBeijingShanghaiShenzhenGuangzhouHangzhouQingdaoNanjingW

19、uhanChengduXianSuzhouNingboChangshaTianjinChongqingXiamenShenyangZhengzhouWuxiRental Change YoYNet Effective Rent(RMB/sqm/day)2Q23 Net Effective Rent(RMB/sqm/day)Rental YoYRent and YoY change of Grade A Offices in Key CitiesIn the first half of 2023,rents of Grade A office buildings in 20 key cities

20、 all experienced varying degrees of rental decline.Pressure on rents persisted as impacted by subdued demand recovery and large new supply.Many landlords have adjusted their leasing strategies to maintain occupancy levels.At the same time,some tenants are taking advantages of the tenant-favored mark

21、et to expand,upgrade or consolidate their office spaces at relatively manageable costs.Despite the overall rents are under downward pressure,rental performance continues to differentiate among submarkets and projects within submarkets.5Chinas Office MarketInsights“Emerging office demand from three I

22、T sub-sectors in ChinaIn 2023,the IT industry will continue to support office leasing demand in major cities across China.By diving into the development strategy of IT sub-sectors as well as recent policy trends,we expect that AIGC(Artificial Intelligence-Generated Content),gaming,and online educati

23、on sub-sectors will lead the expansion of the IT industry in Chinas office market in the near future.1.Gaming:The number of licenses for gaming issued in the first three months of 2023 has exceeded 50%of the total for 2022.A gaming data analysis organization expects the number to cross 1,000 in 2023

24、.Recently,major office leasing markets observed a significant increase in demand for office space from the gaming industry.The revitalization of the gaming industry is expected to generate significant incremental demand for the office market in 2023 and beyond.2.AIGC industry is another IT sub-secto

25、r with a high potential for expansion.In the past decade,the new registration of artificial intelligence-related enterprises in China increased yearly,achieving nine consecutive years of positive growth.Nowadays,the scale of the workforce and the occupied office space of the AIGC industry is relativ

26、ely small.However,relying on the strong support of national policies and the rapid expansion of its market size,the AIGC industry will likely become one of the key drivers of new leasing demand in the office market.3.Online education industry:After the issue of the“double reduction”policy,leading on

27、line education enterprises have been actively adjusting their strategies and choosing to transform into new businesses.Recently,several companies that have made significant inroad into vocational education have helped restored confidence in the online education industry.Online education companies ha

28、ve been active again,seeking new office space since late 2022.Online education is expected to bring moderate demand growth for the office leasing markets.“Enterprises in the entire new energy vehicle(NEV)industry chain rush to cement their position in the Shanghai office marketNew energy vehicles(NE

29、V)are one of the critical focuses of Chinas new strategic industries.Their vigorous development promotes the optimisation and upgrading of the manufacturing structure and is a tactical measure for China to achieve the“dual carbon”goal.After years of development,Chinas NEV industry recorded world-ren

30、owned achievements,with total sales ranking first worldwide for many years.In 2022,the sales of NEV in China exceeded 5.67 million,accounting for more than 50%of the global market share.Moreover,Shanghai takes charge of Chinas NEV transformation with its profound history in automobile manufacturing

31、and cutting-edge technology clusters.With its deep-rooted industrial base in integrated circuits and artificial intelligence,Shanghai has gathered many talents in the industry and possesses abundant research and development resources and capacity.Taking vehicle manufacturers as an example,many compa

32、nies choose stand-alone projects,as shown in the figure above,in Caohejing,Zhangjiang and other business parks as their headquarters and R&D centres.These stand-alone projects not only provide ample space to fulfils manufacturers rising demand for expansion,but also meets the spec requirements for m

33、anufacturers R&D functions including ceiling height,floor loading,power supply,and loading deck.Furthermore,Zhangjiangs mature industrial base in 6integrated circuits and semiconductors helped it become one of the preferred locations for R&D and manufacturing of in-vehicle chips.On the other hand,th

34、e Jinqiao business park,with its traditional manufacturing advantages,has attracted many new force brands and intelligent technology companies.“A renewed interpretation of the comprehensive industrial landscape of Chengdu.Chengdu has witnessed intense developments of office building constructed on i

35、ndustrial land plots in recent years with a stock totaling 11.9 million sqm as of 2023.Combined with the completed commercial office(including Grade A and Grade B)developments,the full samples of office-use space has reached a total stock of 23.3 million sqm.The TMT sectors account for 29.6%of total

36、 office demand,maintaining its position as the top industry in Chengdu.Narrowing our scope to industrial office cohort,the demand from TMTs posted at an impressive level of 42.0%.The dominant momentum reinforces Chengdus advantage as a regional technology and innovation hub in inland China.With a re

37、sidential population exceeding 20 million,Chengdus residential development remains resilient against the headwinds of property markets.Commercial real estate developments are more encouraging:5th ranking in Grade A office stock and 3rd in prime retail stock nation-wide.All data mentioned point to a

38、massive scale of real estate and architecture foundations and has resulted in its strong occupancy in Chengdu offices,accounting for 16.4%of total demand,making it only second to TMT.Finance and business services are mostly common to see in Grade A offices given their higher affordability to high-pr

39、ofiled space.Thus,the higher level of clustering marks a key criterium to assess the maturity of a business center.Echoing with the economic landscape,both service-related sectors consistently beef up office demands,exceling most industries as always.As JLL Data show,finance and business services ac

40、count for 13.0%and 7.1%of total demand respectively,ranking 3rd and 4th places.Sichuan University and its affiliated West China Hospitals are renowned in China.Chengdu has advanced into leading competence in biopharmaceutical R&D and therefore attracted a wide spectrum and chains of pharmaceutical c

41、ompanies to settle.3.5%vs 7.4%are the respective shares of life science and pharmaceutical industry in commercial and industrial offices,re-enhancing our outlook of its sustainable development as a strategic direction of Chengdus economy.“Companies in South China were relatively Prudent towards 2023

42、 Prospect Since the beginning of 2023,as various social activities gradually returned to normality,transportation and consumption figures recovered swiftly,and economic development in South China normalized.Also,the borders between mainland China and Special Administrative Regions,including Hong Kon

43、g and Macau,reopened in the early 2023,raising economic vitality and enterprise confidence to some extent.Under such economic background,to assess the office leasing demand of South China within 2023,JLL South China Research surveyed around 100 companies operating across different industries in Guan

44、gzhou and Shenzhen on their business outlook and real estate strategies for the year.In summary,a large proportion of interviewed companies was relatively confident towards the near-term future,as 47%of the companies held a somewhat optimistic view of economic development in 2023;yet 46%of interview

45、ed companies stayed neutral in 2023 economic prospects and could therefore hold a“wait-and-see”attitude at present.The proportion of interviewed companies that held a pessimistic view was less than 10%.Among those optimistic interviewees,over 30%responded in the affirmative to staff expansion.Regard

46、ing the leasing strategies of these firms with plans to expand,in-house office expansion was the most common,but some of them may still prefer non-expansion or budget-saving relocation to save costs.Among various industries,professional service had a proportion of over 60%giving positive response on

47、 short-term economic prospect.In particular,the proportion of optimistic domestic professional service companies was around 80%,and 60%of these positive companies scheduled team and office space expansions simultaneously.However,foreign professional service companies held a much more reserved judgem

48、ent on 2023.7KowloonHong Kong IslandHong Kong EastKowloon EastTsimshatsuiWanchai/Causeway BayCentral Core submarkets Decentralised submarketsGlance at Major CitiesGlance at Major CitiesThe civil unrest in 2019 followed by the COVID-19 pandemic triggered a major economic downturn in Hong Kong,as real

49、 GDP contracted in three of the last four years.Domestic activity is starting to normalise after the removal of COVID-related restrictions and border open-up in 1Q23,which will provide an impetus to growth for some time.Leasing activities mainly involved consolidation or upgrading as the pandemic pr

50、ompted corporates to value the well-being of employees more highly and reconfigure their real estate requirements.The flight-to-quality trend was prevalent in recent quarters as more office occupiers looked for flexibility and wellness amenities in the workplace.Rental drops in the overall market ha

51、s started to moderate after the shape declines during the pandemic.As of end-1H23,overall net effective rents were HKD 54.1 per sq ft per month,dropping 5.5%y-o-y and the overall vacancy rate was 12.6%.Hong KongHong Kong is a global financial hub and one of the top world cities.Its key strengths inc

52、lude a business-friendly environment,robust infrastructure,as well as deep professional services and entrepreneur network.The city should continue to benefit from its position as a gateway between mainland China and the rest of the world.Where are Hong Kongs office buildings located?Central is the p

53、re-eminent central business district in Hong Kong.Wanchai/Causeway Bay and Tsimshatsui are the other traditional core office submarkets on Hong Kong Island and in Kowloon respectively.Hong Kong East and Kowloon East are popular decentralised office locations as they provide cost-effective options fo

54、r cost-sensitive tenants to relocate to.Total Volume 104.6 Million sq ftNet Absorption-327 Thousand sq ftVacancy Rate 12.6%Average Rent 54.1 HKD/sq ft/monthGDP(HKD)2.78 TrillionGDP from the Tertiary Industry (HKD)2.60 TrillionPermanent Residents 7.3 MillionNo.of Fortune 500 Companies 450+Macroeconom

55、ic Indicators (2022)Indicators of Grade A Office(1H2023)8Thousand sqm-400-2000200400600201520162017201820192020202120222023*2024*New Supply in CBDs New Supply in decentralised areasNet Absorption in CBDsNet Absorption in decentralised areasRent(Net Effective)in CBDs(LHS)Vacancy Rate in CBDs(RHS)Rent

56、(Net Effective)in decentralised areas(LHS)Vacancy Rate in decentralised areas(RHS)HKD/sq ft/Day0%10%20%30%40%50%60%0.00.51.01.52.02.53.03.54.04.5201520162017201820192020202120222023*2024*59%FIREBS 12%Government,Societies,Associations,Consulates,Education10%Manufacturing,Merchandising,Trading5%Other4

57、%TMT2%Medical2%Mining and Energy2%Transport and Storage2%Pharmaceutical2%Architects,Construction&EngineeringSupply and Demand of Grade A Offices in Hong KongRent and Vacancy Rate of Grade A Offices in Hong KongDistribution of Demand for Grade A Offices in Hong Kong by Industry(2H22 to 1H23)Dominant

58、Market Share202241 real estate experts413 office leasing deals completed3,174,0000 sq ft leased spaceTeam LeaderAlex BarnesManaging Director,Hong Kong&Macau Head of Office Leasing Advisory,Hong Kong+852 2846 5125 JLL China Office Leasing Advisory Hong Kong9Zhongguancun Olympics Area As of the first

59、half of 2023,Beijings stock of Grade A offices totaled 10.97 million square meters.Beijings office market is notably policy-oriented.Following the governments demarcation of district boundaries and guidance of industrial layout,CBD has become a comprehensive business hub;Finance Street has become a

60、financial hub;while Zhongguancun has become an IT industry hub.Beijings market performed well due to the abundant demand;specifically,the demand from both financial and IT sectors and the citys strong fundamentals drove the steady market development.Besides its mature submarkets,emerging areas are c

61、ontinuously being planned and constructed in Beijing,creating a new landscape of the commercial real estate market.For example,with the guidance and strong support of the government,some domestic IT and financial giants have settled down in emerging office submarkets such as Lize,where has a rising

62、attractiveness.In the first half of 2023,the demand recovery trend since the beginning of this year did not continue,leaving soft leasing demand.Domestic companies continued to make significant contributions to leasing activity,accounting for more than 80%of the total transaction volume.Overall rent

63、al decline widens as market pressures mount.BeijingAs the national center for politics,international exchange,and science and technology innovation,Beijing is being built into an international financial center.In 2022,Beijings GDP grew by 0.7%to RMB 4.2 trillion.In particular,the share of its tertia

64、ry industry maintained at a high level to cover 83.8%of its total GDP.Total Volume 10.97 Million sqmNet Absorption 30 Thousand sqmVacancy Rate 10.3%Average Rent 10.4 RMB/sqm/dayGDP 4.16 TrillionGDP from the Tertiary Industry 3.49 TrillionPermanent Residents 21.84 MillionNo.of Fortune 500 Companies 4

65、50+Macroeconomic Indicators (2022)Indicators of Grade A Office(1H2023)Where are Beijings office buildings located?Beijing currently has nine relatively mature office submarkets represented by CBD and Finance Street,which register outstanding performance and have a top-tier rent level worldwide.Among

66、 the others,as an emerging sub-market in Beijing,Lize is maturing and attracting market attention thanks to the improvement of railway infrastructure and city terminal construction.Lize East Changan AvenueFinance Street East Second Ring Road Wangjing Third Embassy Area CBD10New SupplyNet AbsorptionT

67、en Thousand sqm020406080100120201520162017201820192020202120222023*2024*RMB/sqm/dayOverall Rent(Net Effective)(LHS)Overall Vacancy Rate(RHS)2.00 4.0 6.0 8.0 10.0 12.0 14.0201520162017201820192020202120222023*2024*0%10%20%30%40%50%60%70%Dominant Market Share202230+real estate experts150 office leasin

68、g deals completed170,000 sqm leased spaceTeam LeaderMichelle LiuHead of Tenant Representation Services,Office Leasing Advisory,Beijing +86 10 5922 1279 Lu Bai Head of Landlord Representation Services,Office Leasing Advisory,North China+86 139 1041 8259 JLL China Office Leasing Advisory BeijingSupply

69、 and Demand of Grade A Offices in Beijing Rent and Vacancy Rate of Grade A Offices in BeijingDistribution of Demand for Grade A Offices in Beijing by Industry(2H22 to 1H23)36%Finance19%TMT19%Professional Services5%Life Sciences2%Manufacturing&Trade2%Retail17%Others 11As of the first half of 2023,Sha

70、nghais stock of Grade A offices totaled 16.75 million square meters.Shanghai has been attracting a large number of Fortune 500 companies and premium companies at home and abroad to settle in and set up headquarters.In particular,financial services,professional services,and retail are the main source

71、 of demand for offices in CBD.With the maturing of the traffic infrastructure and the improvement of retail amenities in decentralised submarkets,the supply of high quality office spaces in these areas has increased drastically.More and more companies have relocated or expanded to decentralised subm

72、arkets,boosting the development of emerging areas such as Qiantan and North Bund.ShanghaiAs Chinas largest economic hub,Shanghai is growing into an international financial center.In recent years,its economic structure transformation has been further optimized with the share of its tertiary industry

73、continuing to increase.Where are Shanghais office buildings located?Huangpu River divides Shanghai into two sections:Pudong(east of Huangpu River)and Puxi(west of Huangpu River).Shanghais office market can be divided into CBDs and the fast-growing decentralised areas that gather high-quality Grade A

74、 offices.Driven by the rapid expansion of urban subways,such division can be seen as a natural evolution of Shanghais office market.There are currently 31 main office submarkets in Shanghai.Total Volume 16.75 Million sqmNet Absorption 215 Thousand sqmVacancy Rate 20.4%Average Rent 7.3 RMB/sqm/dayGDP

75、 4.47 TrillionGDP from the Tertiary Industry 3.31 TrillionPermanent Residents 24.76 MillionNo.of Fortune 500 Companies 450+Macroeconomic Indicators (2022)Indicators of Grade A Office(1H2023)NanjingWest RoadHuaihai RoadPeopleSquareNew Jiangwan Town/WujiaochangSichuan North RoadSuzhouCreekChangshou Ro

76、adXuhuiBundPuxi ExpoPudong ExpoHoutanQiantanXinzhuangHongqiaoTransportationHubWuzhong RoadXujiahuiHongqiaoZhongshanParkChangfengZhenruDaningHuamuXinminyangDalian RoadYangpu RiversideNorth BundZhuyuanLujiazuiXintiandiThe BundShanghai RailwayStationMarket Boundaries：CBDDecentralisedBusiness District T

77、ypes：CoreMatureCentralEmerging12Ten Thousand sqmNew Supply in CBDsNew Supply in decentralised areasNet Absorption in CBDsNet Absorption in decentralised areas050100150200250201520162017201820192020202120222023*2024*0%10%20%30%40%50%60%70%0.02.04.06.08.010.012.0201520162017201820192020202120222023*20

78、24*Rent(Net Effective)in CBDs(LHS)Vacancy Rate in CBDs(RHS)Rent(Net Effective)in decentralised areas(LHS)Vacancy Rate in decentralised areas(RHS)RMB/sqm/day22%Finance16%Professional Service18%TMT10%Retail15%Manufacturing&Trading7%Pharmaceutical&Life Science12%OthersDominant Market Share202253 real e

79、state experts328 office leasing deals completed590,000+sqm leased spaceTeam LeaderAnny ZhangSenior Managing Director,China Leasing;Managing Director,East China+86 21 6133 5427 JLL China Office Leasing Advisory ShanghaiSupply and Demand of Grade A Offices in ShanghaiRent and Vacancy Rate of Grade A O

80、ffices in ShanghaiDistribution of Demand for Grade A Offices in Shanghai by Industry(2H22 to 1H23)13BaietanYuexiu Baiyun New Town Pilot ZoneTianhe North Zhujiang New TownGuangzhou International Finance Town Hanxi-Changlong-WanboGuangzhou South Railway Station Core Area YuzhuPazhouBy the end of 1H23,

81、the total volume of Grade A office in Guangzhou reached 8.39 million sqm.As one of the core cities in South China,Guangzhou has attracted a large number of Fortune 500 companies as well as high-quality foreign and domestic companies in the core areas.Among them,the financial,TMT,and professional ser

82、vices industries are the main sources of office leasing demand.Meanwhile,as emerging areas such as Pazhou continue to develop,more companies have settled in.Particularly,TMT companies have shown a great interest in entering Pazhou,a submarket positioned as an internet innovation cluster.During 1H23,

83、as various local economic activities returned to normality,local economy slightly recovered.However,as performances across industries varied,companies concerns over economic uncertainties and their own businesses in the short term remained.Consequently,corporate tenants stayed cautious about office

84、leasing decisions,which in turns led to the relatively low office space absorption level during 1H23.Overall rents continued to decline under such circumstances.GuangzhouAs a national core city,an integrated metropolis and the provincial capital of Guangdong,Guangzhou is known as the Southern Gatewa

85、y of China.In 2022,Guangzhous GDP grew to RMB 2.88 trillion.In recent years,as the industrial transformation of Guangzhous economy accelerated,Guangzhou has gradually built a native development system,the growth of which is being supported by industries such as high-end services and high-tech manufa

86、cturing.Where are Guangzhous office buildings located?Guangzhous office market can be divided into core areas and emerging areas,including ten main submarkets.The core areas include Zhujiang New Town,Tianhe North,and Yuexiu,where the office market is well-supported by convenient transportation and s

87、table tenant bases.The two key emerging submarkets are Pazhou and Guangzhou International Finance Center,which have attracted many domestic TMT and financial companies to settle in and set up headquarters in recent years;while the relatively remote emerging submarkets have also been developing,and m

88、ore Grade A offices are expected to be completed.Total Volume 8.39 Million sqmNet Absorption 149 Thousand sqmVacancy Rate 21.8%Average Rent 4.8 RMB/sqm/dayGDP 2.88 TrillionGDP from the Tertiary Industry 2.06 TrillionPermanent Residents 18.73 MillionNo.of Fortune 500 Companies 300+Macroeconomic Indic

89、ators (2022)Indicators of Grade A Office(1H2023)Core Submarkets Emerging Submarkets14 Ten Thousand sqm020406080100120140160201520162017201820192020202120222023*2024*New SupplyNet AbsorptionRMB/sqm/dayRent(Net Effective)(LHS)Vacancy Rate(RHS)0%5%10%15%20%25%4.05.06.07.08.02015201620172018201920202021

90、20222023*2024*Supply and Demand of Grade A Offices in GuangzhouRent and Vacancy Rate of Grade A Offices in GuangzhouDistribution of Demand for Grade A Offices in Guangzhou by Industry(2H22 to 1H23)Dominant Market Share202215+real estate experts100+office leasing deals completed100,000+sqm leased spa

91、ceTeam LeaderVictor MarHead of Office Leasing Advisory,South China+86 139 0301 3011 JLL China Office Leasing Advisory Guangzhou17.9%Finance34.3%TMT11.6%Real Estate&Architecture14.4%Others4.4%Retail17.4%Professional Service15 Central Business Districts Emerging Business DistrictsBy June 2023,the tota

92、l stock of Grade A office buildings in Shenzhen reached 12.3 million sqm.Since high-tech firms and their related industries,a key contributor of Shenzhens office leasing demand,tended to cluster in Nanshan,this district has gained popularity among tech firms when making leasing decisions.The financi

93、al sector is mainly concentrated in the Central Futian Area,but with its presence scattered across the city.Geographically,the development of Shenzhens office market has shown signs of westward shifts and from CBDs to emerging districts.With the completion of more artery roads and subways,more enter

94、prises will relocate to newly built offices in emerging business districts,which will in turn cultivate the development of these areas.Coming into 2023,Shenzhens economic recovery started off rather strong and then embarked on the post-pandemic new normal.Compared with 2022,an increasing number of o

95、ffice tenants became willing to invest in fixed costs,yet with a lowering rental affordability under budget-cutting,leading to more leasing transactions recorded in 2023 but at a lower price.In addition,the steady leasing demand combined with the gradual move-in of self-use into recently completed p

96、rojects and a limited new supply in 1H23,the citywide vacancy rate fell by 0.5 ppts from the end of 2022 to 22.6%in June 2023.However,rents continued to decline in front of a large incoming supply in the next 18 months.ShenzhenShenzhen is not only one of Chinas economic centres and innovative cities

97、,but also a key special economic zone.In particular,Shenzhens economy scored a 3.3%annual GDP growth amid multiple uncertainties in 2022,reaching RMB 3.24 trillion.In the past few years,Shenzhen has formed a modern industrial system on the back of high-tech,financial,logistics and cultural industrie

98、s,through continuous efforts of elevating the competitiveness of the advanced manufacturing and expediting the citys development into a international financial and innovation hub.Where are Shenzhens office buildings located?CBDs develop from east to west like an“inner ring”,including Caiwuwei,Huaqia

99、ngbei,Futian CBD,Chegongmiao,Shenzhen High-Tech Industrial Park,and Houhai.Emerging business districts include Qianhai,Baoan Central,Liuxiandong Headquarters Base,North Station Business District,and Sungang Area,most of which are located along the Shenzhen Metro Line 5,which works as an equivalent t

100、o the“middle ring”.Baoan Central Qianhai Houhai ShekouShenzhen High-Tech Industrial ParkShenzhen Bay Super Head-quarters Base Chegongmiao Futian CBD Huaqiangbei CaiwuweiSungang Liuxiandong Headquarters BaseNorth Station Business District Metro Line 5Total Volume 12.32 Million sqmNet Absorption 190 T

101、housand sqmVacancy Rate 22.6%Average Rent 5.7 RMB/sqm/dayGDP 3.24 TrillionGDP from the Tertiary Industry 2.00 TrillionPermanent Residents 17.66 MillionNo.of Fortune 500 Companies 290+Macroeconomic Indicators (2022)Indicators of Grade A Office(1H2023)16050100150200250201520162017201820192020202120222

102、023*2024*Ten Thousand sqmNew SupplyNet AbsorptionRent(Net Effective)(LHS)Vacancy Rate(RHS)RMB/sqm/day0%5%10%15%20%25%30%4.04.55.05.56.06.57.07.58.08.59.0201520162017201820192020202120222023*2024*38%Finance26%TMT9%Real Estate&Architecture8%Professional Service7%Retail&Trading12%OtherSupply and Demand

103、 of Grade A Offices in ShenzhenRent and Vacancy Rate of Grade A Offices in ShenzhenDistribution of Demand for Grade A Offices in Shenzhen by Industry(2H22 to 1H23)Dominant Market Share202220+real estate experts150+office leasing deals completed160,000+sqm leased spaceTeam LeaderAlfred LiHead of Offi

104、ce Leasing Advisory,Shenzhen+86 13512731752 JLL China Office Leasing Advisory Shenzhen17High-tech WestTianhuiGuobinCity EastShuangnanSouth Renmin RoadLongtanOuter GuanghuaWuhou New TownFinancial CitySanshengTownSSCIPHuayangXibo CityXinglong LakeCityWestCity CenterDayuanYixinLake CBD DecentralisedAs

105、of 1H23,Chengdus stock of Grade-A offices totalled at 4.8 million sqm,ranking fifth in China.From demand perspective,Chengdus leasing activities remains vibrant,with an average net absorption of 0.2 million sqm from 2018-2022.Entering 2023,the uneven consumption-driven recovery,accompanying with the

106、 slow rebound of manufacturing,real estate sector still appear frail in significantly boosting tenant sentiment.As result,the decision-making cycle of enterprises extended,the leasing weakened in the first half of year.Along with decreasing demand,intense competition stemming from large vacant space

107、s is expected to put bigger pressure on landlords pricing strategies.Accounting about 50%of new deals,TMT and finance sectors remained the main drivers of leasing market,while advanced manufacturing firms,chip industry maker,and new energy industry companies also showed growth potential bringing new

108、 opportunities for leasing.With an expected huge improvement in off-line consumption,demand from retail and trading sector recovered significantly on y-o-y basis.ChengduAs an economic,financial and education hub in western China,Chengdu plays one of leading roles among all Tier 1.5 cities.In 2023,Ch

109、engdus GDP exceeded RMB 2 trillion.For industries aspect,TMT increased by 6.8%and financial industry increased by 6.6%on y-o-y basis.The situation of international gateway hub continued improved.In 2022,Chengdu annual air passenger throughput ranked first all over the country,and the China-Europe Ex

110、press(Chengdu-Chongqing)operation volume ranked among the top in the country.Where are Chengdus office buildings located?Chengdus office market is distributed along with the“1+1+1”structure,namely the traditional business district(City Center and South Renmin Road)+Hi-tech South Zone(Financial City

111、and Dayuan)+Tianfu New Area.As the market gradually matures,it has now entered a stage where“incremental development”and“inventory revitalization”are of equal importance.At the current stage,City Center and Financial City areas are already mature,which have seen the gathering of large domestic and f

112、oreign institutions and developers and formed the CBD area,with finance,TMT,real estate and trade as their leading industries.City East and Tianfu New Area are expected to be the main market for incremental stocks in the future.Total Volume 4.8 Million sqmNet Absorption 64.6 Thousand sqmVacancy Rate

113、 29.5%Average Rent 2.9 RMB/sqm/dayGDP 2.08 TrillionGDP from the Tertiary Industry 1.38 TrillionPermanent Residents 21.27 MillionNo.of Fortune 500 Companies 315 Macroeconomic Indicators (2022)Indicators of Grade A Office(1H2023)18Ten Thousand sqm010203040506070802017201820192020202120222023*2024*New

114、SupplyNet Absorption Rent(Net Effective)(LHS)Vacancy Rate(RHS)RMB/sqm/day0.0%10.0%20.0%30.0%40.0%50.0%2.52.72.93.13.33.52017201820192020202120222023*2024*19.7%TMT19.5%Professional Service17.8%Finance14.7%Real Estate&Architecture4.2%Retail3.9%Trading3.2%Hospitality&F&B3.0%Energy,ESG&Public Utilities2

115、.9%Pharmaceutical&Life Science11.1%OthersSupply and Demand of Grade A Offices in ChengduRent and Vacancy Rate of Grade A Offices in ChengduDistribution of Demand for Grade A Offices in Chengdu by Industry(2H22 to 1H23)Dominant Market Share202211 real estate experts66 office leasing deals completed60

116、,000 sqm leased spaceTeam LeaderHattie DengHead of Office Leasing Advisory,West China +86 28 6680 5009 JLL China Office Leasing Advisory Chengdu19Kevin Liu Head of Office Leasing Advisory Chongqing+86 136 3777 3054 Supply and Demand of Grade A Offices in ChongqingRent and Vacancy Rate of Grade A Off

117、ices in Chongqing Where are Chongqings office buildings located?With the national planning of the Chengdu-Chongqing Economic Circle,Chongqing is joining hands with Chengdu to build the fourth pole of Chinas economy.The Jiefangbei CBD,Jiangbeizui CBD and Zhaomushan area constitute the three core offi

118、ce districts in Chongqing.Jiefangbei CBD is the most concentrated area for foreign companies in Chongqing;Jiangbeizui CBD is the business district with the highest concentration of financial industry in Chinas inland region;and Zhaomushan area is a strategic development area for Chongqings technolog

119、y and internet industry.In the future,the traditional business district will be revitalized through urban renewal and the office map of Chongqing will be further extend westward and northward.New districts such as Central Park and Western Science City will be formed in three to five years.ChongqingC

120、hongqing is the only municipality in Chinas inland region,the economic and financial center of the upper reaches of the Yangtze River,the strategic connection point of the Yangtze River Economic Belt and the New International Land-Sea Corridor and the growth pole of“Chengyu Economic Circle”.During t

121、he“14th Five-Year Plan”period,Chongqing will layout a number of strategic emerging industrial chains around information technology,new energy,intelligent vehicles and high-end equipment etc.,which will lay the foundation for the growth of office market demand.By 1H23,the total stock of Grade A offic

122、e buildings reached 3.7 million sqm,ranking sixth in China.Chongqing has attracted over 300 of Fortune 500 companies to settle in and set-up regional headquarters.Finance,professional services,and real estate&architecture industries are the main sources of office demand for CBD areas.Driven by smart

123、 city strategy,the TMT industry is developing rapidly and becoming a vital source for office spaces in recent years.New SupplyNet Absorption-1001020304050602017201820192020202120222023*2024*Ten Thousand sqm0.0%10.0%20.0%30.0%40.0%50.0%0.01.02.03.04.05.02017201820192020202120222023*2024*RMB/sqm/dayRe

124、nt(Net Effective)(LHS)Vacancy Rate(RHS)20Central ParkZhaomushanXinpaifang Western Science City Guanyinqiao Jiangbeizui Jiefangbei Nanping YanjiapingDashihua Core Areas Non-Core AreasWangjiadun Jianshe Avenue Hankou Riverside Jiefang Avenue Wuchang Riverside Zhongnan-Zhongbei RoadOptics Valley (Tradi

125、tional Area)Ning Liu Head of Office Leasing Advisory Wuhan+86 27 5959 2128 Supply and Demand of Grade A Offices in WuhanRent and Vacancy Rate of Grade A Offices in Wuhan Where are Wuhans office buildings located?There are seven Grade A office submarkets in Wuhan.The office market is concentrated in

126、the Hankou area on the north side of the Yangtze River,including Hankou Riverside,Jiefang Avenue,Construction Avenue,and Wangjiadun.The office market is more decentralized in the Wuchang area on the south side of the Yangtze River,including Wuchang Riverside,Zhongnan-Zhongbei Road,and Optics Valley.

127、This distribution pattern is related to the unique geographic environment of Wuchang,where Shahu,Donghu,and Nanhu naturally divide the office market in Wuchang into separated submarkets.WuhanAs of 1H2023,the stock of Grade A office buildings in Wuhan reached 2.85 million sqm.The unique geography of

128、lying at the convergence of the Hanjiang River and the Yangtze River and being known for three towns(Hankou,Hanyang,and Wuchang)lead to a polycentric development pattern in Wuhan,where seven major Grade A office submarkets have taken shape.These submarkets all have distinctive characters after years

129、 of development based on different development plans and industrial backgrounds in their areas.Overall,the financial industry,TMT,and real estate and architecture contribute main demands in the Grade A market.In terms of submarkets,Jianshe Avenue in Hankou is the traditional financial hub,while Zhon

130、gnan-Zhongbei Road in Wuchang focuses on Huazhong Financial City,both dominated by tenants from the financial industry.As a national high-tech zone,Donghu New Technology Development Zone(known as“Optics Valley”)has a solid industrial foundation,which gathers a large number of tech companies and feat

131、ures a strong atmosphere of innovation and entrepreneurship,attracting many companies from the TMT industry.RMB/sqm/day0%10%20%30%40%50%0.01.02.03.04.05.0201520162017201820192020202120222023*2024*Rent(Net Effective)(LHS)Vacancy Rate(RHS)New SupplyNet AbsorptionTen Thousand sqm01020304050607020152016

132、2017201820192020202120222023*2024*21Jerry Chen Head of Office Leasing Advisory Nanjing+86 8966 0660 NanjingAs of the first half of 2023,Nanjing Grade A office buildings totalled 2.53 million sqm.Nanjing has developed a commercial landscape of four CBDs led by Xinjiekou and Hexi.Among the four submar

133、kets,Gulou and Xinjiekou are matured traditional business districts,which were developed early and have a diversified tenant structure,primarily from the financial and professional services industries.Hexi serves as the Pan-Yangtze River Delta Regional Financial Centre(PYDRFC)and offers a continuous

134、 supply of high-quality office buildings,attracting the set-up of headquarters of various domestic financial institutions and technology-based enterprises.In addition,the South Station submarket which serves as a high-speed railway transportation hub,is developing into a vibrant town area with a foc

135、us on commerce and trade,health and leisure,and cultural and creative industries.Where are Nanjings office buildings located?Nanjings Grade A offices are mainly distributed in four core areas:Xinjiekou and Gulou(traditional CBDs),Hexi(maturing CBD)and South Station(rapid developing).In the coming ye

136、ars,high-quality projects are planned and will enter the market in each of these submarkets,of which Hexi submarket will host a significant influx of new premium office buildings.Supply and Demand of Grade A Offices in NanjingRent and Vacancy Rate of Grade A Offices in NanjingNew SupplyNet Absorptio

137、nTen Thousand sqm-10 20 30 40 50 6020162017201820192020202120222023*2024*0%10%20%30%40%50%0.01.02.03.04.05.020162017201820192020202120222023*2024*RMB/sqm/dayRent(Net Effective)(LHS)Vacancy Rate(RHS)GulouXinjiekouSouth StationHexi22 HuanglongFuture Sci-Tech CityBinjiang Qianjiang Century CityGongbei

138、Canal Business DistrictWulinQJNCJiubaoXiashaRMB/sqm/day0%10%20%30%40%50%0.01.02.03.04.05.06.0201520162017201820192020202120222023*2024*Rent(Net Effective)(LHS)Vacancy Rate(RHS)William You Head of Office Leasing Advisory Hangzhou+86 571 8196 5968 Where are Hangzhous office buildings located?According

139、 to the timeline of submarket development history,Hangzhou can be divided into traditional core business districts around the West Lake represented by Huanglong and Wulin,new core business districts represented by Qianjiang New City alongside the river,and emerging business districts represented by

140、Future Sci-tech City that in response to the development of the industrial corridor.In terms of the industry focus of the building,Hangzhous office market can be divided into the premium office market with the business office as the attribute thats dominated by financial and professional services in

141、dustries,and the premium business park market with innovation and research as the main attribute thats dominated by the TMT industry.In Hangzhou,there are mainly six premium office submarkets and six premium business park submarkets.HangzhouAs of 1H2023,the total stock of Grade A office in Hangzhou

142、has reached 2.8 million sqm.The finance and TMT companies still took a dominant position in leasing demand,and the leasing demand activity of the professional service industry has rebounded significantly.Looking back on 2022,Hangzhou continued to promote the accelerated integration of the digital ec

143、onomy and the real economy,and the core industries of the digital economy have achieved an added value of 507.6 billion yuan throughout the year,accounting for 27.1%of GDP.At the same time,the advanced manufacturing industry was developing rapidly,the transformation and upgrading of the traditional

144、manufacturing industry continues to advance,new steps have been taken in the transformation and upgrading of the industrial structure,and the scale of the advanced manufacturing industry continues to grow.With the approach of the Hangzhou Asian Games,Hangzhous urban traffic network and infrastructur

145、e construction have become more convenient,and the high-quality development of the citys economy has been promoted.The citys attractiveness to foreign-funded enterprises is increasing.Supply and Demand of Grade A Offices in HangzhouRent and Vacancy Rate of Grade A Offices in Hangzhou0204060201520162

146、017201820192020202120222023*2024*New SupplyNet AbsorptionTen Thousand sqm23 Office Business ParkJoy He Head of Office Leasing Advisory Xian+86 29 8932 9800 XianThe economy of Xian has entered the trillion club,becoming the first city in Northwest China with a GDP exceeding one trillion RMB.As a gate

147、way city and a national central city in the northwest region and taking advantage of the development strategy of the“Belt and Road”core area,Xian continues to exert its urban attractiveness,and continues to attract the worlds top 500 companies and high-quality companies at home and abroad.In 2023,th

148、e stock of Grade A buildings in Xian has increased to near 2.2 million sqm,ranking 12th in the country.For a long time,the TMT industry,real estate construction,and service industry have been the pillar industries of Xian office buildings.Among them,the TMT has developed rapidly and has become an im

149、portant source of growth in the office market.Looking to the future,the Xian office market is about to enter a period of high supply.In the next two years,the Grade A office market in Xian is expected to usher in about 70 thousands square meters of new supply,of which the High-tech zone will become

150、the focused areas for increased supply.Where are Xians office buildings located?There are mainly 6 office submarkets in Xian.Due to the protection of the ancient buildings in the city center,the city has a height limit for new buildings,so the stock of office buildings in the city center only accoun

151、ts for 3%of the city.The Second Ring Road South&Xiaozhai submarket is the earliest developed commercial area in Xian,the current stock of high-quality office buildings is about 3%.The Xian High-tech Industrial Development Zone,as the core business gathering area in Xian,has formed two major office b

152、uilding submarkets,Hi-tech South and Hi-tech North,after nearly 30 years of development,carrying more than 50%of office demand.With the expansion of the citys territory,City North and Qujiang have gradually developed into office building sub-markets with a high degree of industrial agglomeration,car

153、rying over 40%of the office demand.In the future,with the further development of Xian,areas such as the Xixian New District and Xian International Trade&Logistics Park will gradually form new industrial office clusters.City NorthCity CentreHi-tech NorthHi-tech South2nd Ring Road South&XiaozhaiQujian

154、gIntl Trade&Logistics ParkXixianSupply and Demand of Grade A Offices in XianRent and Vacancy Rate of Grade A Offices in XianTen Thousand sqmNew SupplyNet Absorption01020304020162017201820192020202120222023*2024*RMB/sqm/day0.0%10.0%20.0%30.0%40.0%50.0%60.0%0.00.51.01.52.02.53.03.54.020162017201820192

155、020202120222023*2024*Rent(Net Effective)(LHS)Vacancy Rate(RHS)Core Area Non-core Area24Haihe RiversideOld Town-HaiguangsiNanjing Road-XiaobailouWeijin South RoadYouyi RoadNew Badali0%10%20%30%40%50%60%0.00.51.01.52.02.53.03.54.020162017201820192020202120222023*2024*RMB/sqm/dayRent(Net Effective)(LHS

156、)Vacancy Rate(RHS)Ten Thousand sqm02468101214162017201820192020202120222023*2024*New SupplyNet AbsorptionWilliam Gao Head of Office Leasing Advisory Tianjin/Shenyang+86 22 5901 1999 Where are Tianjins office buildings located?In Tianjin,there are six major office submarkets with Nanjing Road-Xiaobai

157、lou,Laochengxiang-Haiguang Temple,Haihe River Front and Youyi Road as the core areas,where quality office projects gather based on mature business facilities and infrastructure.With the increase of new projects,Tianjins office areas have been expanding with emerging business districts such as South

158、Weijin Road and New Badali.Supply and Demand of Grade A Offices in TianjinRent and Vacancy Rate of Grade A Offices in TianjinTianjinAs of 1H23,the stock of Grade A office buildings in Tianjin totaled 1.52 million square meters.Throughout 2022,the technology and internet sector and professional servi

159、ces sector steadily increased their share of demand,dominated by the rapid growth of domestic-funded technology enterprises and business services companies.The scale of new supply in the market will remain within a reasonable range over the next two years,providing opportunities for gradual release

160、in supply and demand pressure.It is expected that the increasing endogenous demand in Tianjin in the future,and more projects to undertake the evacuation of Beijings non-capital functions will also bring more market vitality to Tianjin.25William Gao Head of Office Leasing Advisory Tianjin/Shenyang+8

161、6 22 5901 1999 ShenyangAs of 1H23,the stock of Grade A office buildings in Shenyang totaled 1.52 million square meters.Demand slowed down in 2022 but has increased since 2023 as Covid-19 restrictions eased.Relocation and expansion of domestic companies were major demand drivers,while demand from for

162、eign companies was modest.Looking forward,new supply remain high and mainly concentrated in CBD and Golden Corridor submarkets,which bring upgrade opportunities for tenants.Rent may decrease under destocking pressure.In mid-to-long term,rent is expected to narrow with the steady recovery of demand.W

163、here are Shenyangs office buildings located?The office market in Shenyang is mainly located in core areas such as CBD,Golden Corridor,and Zhongshan Taiyuan Street.With the maturing of the CBD and the Golden Corridor,large numbers of prime office supply have rapidly filled the area and become the mai

164、n Grade A submarkets in Shenyang.0%5%10%15%20%25%30%35%40%45%50%0.00.51.01.52.02.53.03.5201520162017201820192020202120222023*2024*RMB/sqm/dayRent(Net Effective)(LHS)Vacancy Rate(RHS)Ten Thousand sqmNew SupplyNet Absorption05101520253035201520162017201820192020202120222023*2024*Core DecentralizedSupp

165、ly and Demand of Grade A Offices in ShenyangNorth Golden CorridorMiddle Golden CorridorZhongshan Taiyuan Street Zhongjie South Golden Corridor -Wuli RiverSanhao StreetOlympic CenterCBDRent and Vacancy Rate of Grade A Offices in Shenyang26Changjiang Middle RoadApple Qu Head of Office Leasing Advisory

166、 Qingdao+86 532 8579 5800 Where are Qingdaos office buildings located?Grade A offices in Qingdao are mainly gathered in three submarkets:Hong Kong Middle Road,Shibei CBD,and Jinjialing.Hong Kong Middle Road is a comprehensive core business district;Shibei CBD is a hub for new economy companies;and J

167、injialing in Laoshan District is a center for companies from the financial industry.QingdaoAs of 2023H1,the stock of Grade A office buildings in Qingdao totaled 888 thousand square meters.Large companies remained resilient,as top companies in the traditional finance sector and state-owned constructi

168、on companies were recorded as the main contributors to large deals in the Grade A market.However,more small-to-medium companies have opted to right-size their offices to improve cost efficiency.While economic stimulus measures and positive signals were sent out at the beginning of 2023H2,it will tak

169、e time for supportive policies to start benefiting the office leasing market.New City Center Jinjialing Shibei CBD Hong Kong Middle RoadRMB/sqm/day0%10%20%30%40%50%0.01.02.03.04.05.02017201820192020202120222023*2024*Rent(Net Effective)(LHS)Vacancy Rate(RHS)Supply and Demand of Grade A Offices in Qin

170、gdaoRent and Vacancy Rate of Grade A Offices in QingdaoTen Thousand sqmNew SupplyNet Absorption02468101214162017201820192020202120222023*2024*27Supply and Demand of Grade A Offices in ChangshaRent and Vacancy Rate of Grade A Offices in ChangshaChangshaAs of 1H2023,the stock of Grade A office buildin

171、gs in Changsha reached 2.49 million sqm.Changsha continues to attract Fortune 500 companies and high-quality domestic and foreign companies.Among which,the finance,professional services,and TMT sectors leading the demand in the Grade A market.Wuyi Avenue and Wujialing are the traditional CBDs in Cha

172、ngsha,which have more mature supporting facilities and transportation infrastructure.Binjiang New Town,an area with rising popularity in recent years on the west bank of Xiangjiang River,keeps attracting high-quality financial companies with the position as the“financial center of Hunan”.While the M

173、eixi Lake area in the same area is committed to building a science and innovation center,where the TMT industry showing strong demand.Ten Thousand sqm010203040506070201520162017201820192020202120222023*2024*New SupplyNet Absorption0%10%20%30%40%50%60%0.00.51.01.52.02.53.03.52015201620172018201920202

174、02120222023*2024*RMB/sqm/dayRent(Net Effective)(LHS)Vacancy Rate(RHS)Supply and Demand of Grade A Offices in SuzhouSuzhouAs of the first half of 2023,the stock of Grade A office buildings in Suzhou totaled 2.01 million square meters,most of which are located at Suzhou Industrial Park.Suzhou Industri

175、al Park is divided into two parts by the Jinji Lake,i.e.Hudong to the east and Huxi to the west of the lake.The Huxi area was developed earlier,with office buildings lined westward from the Gate of the Orient,a landmark of Suzhou.Office leasing activities in the Huxi area are stable with diverse ten

176、ants,most of which are foreign professional service and manufacturing companies,and domestic securities and insurance companies.In recent years,high-quality offices continued to enter the market in Hudong.These projects of experienced developers improved the business atmosphere and provided Huxi ten

177、ants with more cost-saving options.In June 2023,Suzhou Metro Line 11 opened to traffic,directly connected to Shanghai Line 11.This will further improve the transport connection and business interactions of Suzhou within the YRD region,promoting Suzhous economic development thus driving more office d

178、emand in Suzhou.Rent and Vacancy Rate of Grade A Offices in SuzhouTen Thousand sqmNew SupplyNet Absorption051015202530201520162017201820192020202120222023*2024*RMB/sqm/day0%10%20%30%40%50%0.00.51.01.52.02.53.03.5201520162017201820192020202120222023*2024*Rent(Net Effective)(LHS)Vacancy Rate(RHS)28Wux

179、iWuxis Grade A office buildings are located in four key areas,with a total stock of 610,000 square meters in 1H2023,where the majority of the total stock is located in its Chongan District and Taihu New City.Situated where Wuxis metro line 1 and line 2 meet,Chongan has a large supply of office build

180、ings and diversified tenants,bringing together lots of domestic and overseas financial,services,manufacturing&trading companies,as well as 3rd Party Office Operator.To save costs,some companies headquartered in Shanghai have set up their back offices in Wuxi.In recent years,the Wuxi government has b

181、een promoting the Taihu New City submarket and has encouraged domestic banks and securities companies to purchase office buildings and set up headquarters in this area.Taihu New Citys regional growth driver has been further strengthened after the Wuxi government relocated there,further prompting som

182、e local companies to relocate to Taihu New City.Supply and Demand of Grade A Offices in WuxiRent and Vacancy Rate of Grade A Offices in Wuxi-20246810121416201520162017201820192020202120222023*2024*New SupplyNet AbsorptionTen Thousand sqmZhengzhouAs of 1H23,the stock of Grade A office buildings in Zh

183、engzhou totaled 2.06 million square meters.There are six office submarkets in the city,including the traditional areas as Jinshui Road,Nongye Road-Zijinshan Road,and western Zhengzhou,as well as the CBD,high-speed rail station submarket and North Longhu submarket in the emerging Zhengdong New Distri

184、ct.A large number of newly built Grade A office buildings from 2014 to 2016 significantly raised the vacancy rate in Zhengzhou and increased the competitive pressure in the market.In recent years,domestic professional service,IT,high-tech and finance industries have supported the demand for office s

185、pace in Zhengdong New District,driving the sales of its office space.In the next two years,there will be a limited supply of new office buildings in Zhengzhou,so the vacancy rate in the whole city is expected to steadily decrease and the Grade A office rent level is forecasted to gradually stabilize

186、.Supply and Demand of Grade A Offices in ZhengzhouRent and Vacancy Rate of Grade A Offices in ZhengzhouRMB/sqm/day0%10%20%30%40%50%60%0.00.51.01.52.02.53.0201520162017201820192020202120222023*2024*Rent(Net Effective)(LHS)Vacancy Rate(RHS)RMB/sqm/day0%10%20%30%40%50%60%0.00.51.01.52.02.53.02015201620

187、17201820192020202120222023*2024*Rent(Net Effective)(LHS)Vacancy Rate(RHS)Ten Thousand sqmNew SupplyNet Absorption0102030405060201520162017201820192020202120222023*2024*29Rent(Net Effective)(LHS)Vacancy Rate(RHS)201520162017201820192020202120222023*2024*0%10%20%30%40%50%0.00.51.01.52.02.53.0RMB/sqm/d

188、ayTen Thousand sqmNew SupplyNet Absorption05101520253035201520162017201820192020202120222023*2024*NingboAs of 1H2023,the total stock of Ningbo Grade A office reached 1.13 million square meters.Relying on geographical advantages and port resources,import&export trading and logistics&shipping are the

189、main forces of Ningbo office leasing demand.In the past ten years,the core business district of Ningbo is mainly concentrated on the Sanjiangkou,namely Jiangbei,Haishu and Jiangdong business districts.With the continuous improvement of Ningbos urban construction,the eastward relocation of the munici

190、pal government,and the gradual maturity of the development of the Eastern New Town,the focus of the leasing market has gradually shifted.At the same time,the south CBD has gradually matured and developed into an important emerging submarket in Ningbo.However,the projects in South CBD are mainly deve

191、loped and operated by local developers,and there is still a lack of high-quality Grade A office buildings.Supply and Demand of Grade A Offices in NingboRent and Vacancy Rate of Grade A Offices in Ningbo30How we grade office buildings?As there are no clear classification rules for office buildings,JL

192、L has reviewed the performance of different grades of office buildings according to international standards.The following indicators are for reference only and are not used as the sole standards for classifying office buildings.Premium Grade AGrade AGrade BMeet 12 of the following 13 criteria Meet 1

193、0 of the following 13 criteriaMeet 10 of the following 13 criteriaOwnershipSingle ownership(single landlord)Sole ownershipSole ownership or 50%of the GFA is held by one landlordProperty locationCore CBDCBD or decentralisedCBD or decentralisedPublic transportation and convenience Railway transportati

194、on(directly accessible or within 5-to 10-minute walking distance);Retail stores,business districts,and F&B amenities(directly accessible or within 5-to 10-minute walking distance);Convenient public transportation Railway transportation(directly accessible or within 10-minute walking distance);Retail

195、 stores,business districts,and F&B amenities(directly accessible or within 5-to 10-minute walking distance);Convenient public transportation Railway transportation(directly ac-cessible or within 10-to 15-minute walking distance);Retail stores,business districts,and F&B amenities facilities(directly

196、accessible or with-in 15-minute walking distance);Convenient public transportationStandard floor area 2,000 sqm 1,500 sqm 1,200 sqmEfficiency 70%for whole floor lease 65%for whole floor lease 60%for whole floor leaseFloor-to-ceiling height 2.8 m 2.7 m 2.5 mElevated floorFullyPartiallyNoneAir conditi

197、oning system Intelligent central FCU or VAV systems PM2.5 filters Central FCU or VAV systems PM2.5 filtersCentral FCUDeveloper/Property Management Developer with international experience Property manager with an inter-national background Experienced developer Experienced property managerNo special r

198、equirementsElevator0.13 elevators(or more)per 1,000 sqmSufficient elevatorsSatisfying the basic needs for eleva-torsParking facilitySmart parking,sufficient parking spacesSufficient parking spacesSatisfying the basic parking needsElectricity supplyDouble circuit power supply,Back-up generator setDou

199、ble circuit power supply,Backup generator set(for emergency use only)Ordinary power supply for regular office useEnvironmental protection and sustainable developmentLEED certification/What are the types of office buildings?By property ownershipSingle ownership(single landlord)Strata title ownership(

200、multiple landlords)An office building with sole ownership is often owned by a developer,an enterprise,or an institutional investor.The ownership of some office buildings is shared by multiple landlords.The ownership of different office units or floors in this type of office building is held by diffe

201、rent landlords.By office typesTraditional OfficeService-Oriented OfficeCo-Working SpaceTraditional offices are typical places for corporate employees to work,engage in business activities,and share functional facilities.They can be divided into multiple levels such as Premium Grade A,Grade A,and Gra

202、de B according to the quality of the building and amenities.Compared with service-oriented offices and co-working office spaces,traditional offices may require fit-up after delivery and a longer lease term.Service-oriented offices are fully furnished and can be rented and used immediately.Compared t

203、o traditional offices,they are more flexible and can meet different sizes of office space.These offices enable companies to start their business quickly and satisfy their needs for short-term office leases.But tenants have to share functional spaces such as meeting rooms and reception.Co-working spa

204、ces are often used by entrepreneurs,freelancers,or people working for multiple employers to share office facilities,and exchange ideas and knowledge.Featuring multiple leasing models,flexible lease terms,and lower costs,co-working spaces are popular among tenants in a rapid expansion or those who wi

205、sh to reduce the workspace needed.In Beijing,the areas with the highest density of co-working spaces are the CBD and Wangjing in Chaoyang District.Co-working spaces are becoming a new option for many enterprises to lower their property costs and to meet the diverse needs of employees.Office Leasing

206、Guide31What are the costs of renting an office?What needs to be considered in office leasing?Office Location An ideal office location including its surrounding environment and amenities not only enhances the corporate image but also helps to increase the confidence of tenants and employees in their

207、companies and improve work productivity.We offer professional and comprehensive advice in multiple aspects to help tenants in making the best decision.Leasing Area The number of employees and the way of using office space are crucial in determining the area needed for a workplace.With the trend in d

208、igital transformation and the development of innovative technologies,flexible working spaces will gradually become mainstream.More enterprises are starting to integrate flexible office models into their strategies.In the era of the“future of work”,We will assess your current office space utilization

209、,provide customized space optimization solutions based on your business needs and goals,and estimate fit-up costs for you to make the best decision.Progress Management Depending on the size of the companys business and office space planning,companies typically require 2-6 months to complete the set-

210、up of a new office.To ensure the successful completion of the project,it is critical to allow sufficient time for the project.Our professional consultants will develop a timeline for the tenant and remind them to make the necessary decisions in a timely manner at key points.Budget Control Cost contr

211、ol is a major trend in every industry today.Since many landlords do not quote in a standard format,we advise tenants to carefully compare Letter of Intent to lease of different office buildings.As office rents are subject to constant adjustment in line with market conditions,our team of professional

212、 consultants will conduct a specific analysis of the tenants needs and recommend the right office.ESGWith the publics attention on ESG,as well as the disclosure requirements from relevant organizations for enterprises on ESG,our professional consultant team will recommend suitable offices according

213、to the needs of enterprises when selecting office locations to assist enterprises achieving their goals such as reducing greenhouse gas emissions.Rent:The standard lease term of office space in the market is 3 years,and the rent usually remains unchanged for these 3 years.Some landlords may accept a

214、 lease term of 5-6 years or even longer,but they may adjust the rent during the lease term.+Property management fees:Property management fees are another key expenditure item besides rent during the leasing process.The fees are usually non-negotiable and are generally charged by the property managem

215、ent company hired by the landlord.Lease deposit:A lease deposit is a security deposit paid by the tenant to the landlord upon the signing of the Tenancy Agreement as a percentage of the rent payable to guarantee the fulfillment of the lease contract.The lease deposit is usually returned upon fulfill

216、ment of the Tenancy Agreement.Fit-out fees:The office rented by a tenant is generally not furnished(open delivery),and the fit-up fees of the office are borne by the tenant.Restoration fees:At the end of the lease term,the tenant is responsible for the cost of restoring the leased office to the cond

217、ition in which it was delivered.Drawing approval/renovation management fee:Some landlords will collect fees for approving all drawings for decoration construction,including the management fees incurred in the process.Legal fees(if any):Both parties involved in a leasing process may have to bear the

218、legal fees incurred during the negotiation and fulfillment of the lease.VAT:The VAT rate is 5%or 9%of the rent,and 6%of the management fees,and the party to bear the tax is subject to the final negotiation.Stamp duty:Stamp duty is one-thousandth of the total contract amount and is generally split 50

219、/50 between the landlord and tenant.Agency fee:For a new lease,the landlord generally bears the agency fee,which is usually 1-2 months rent.and can be negotiated between the parties before the final documentation from the developer confirming the agency fee.32What are the steps to lease an office?Of

220、fice Leasing ProgressFit-out preparation&design1.Identifying needsDetermine the basic selection criteria based on a tenants requirements,such as rent budget,required leasing area,and approximate location.Preliminary technical due diligence among different buildings to facilitate the process of short

221、list;2.Market Research and AnalysisConduct comprehensive,in-depth market research and on-site inspections on office building options.Detail technical due diligence on shortlist buildings and gap analysis between the build-ing provisions and client needs;3.Negotiation Strategy and Invitation LetterNe

222、gotiations with landlords for selected office buildingsTest fit layout development;provide the tech-nical support during the process of landlord negotiation based on TDD and Test Fit results.4.Analysis of Lease Conditions and Confirmation of TermsConfirm the leasing terms with the landlord,sign the

223、Letter of Intent for the lease,and pay a lease deposit.Technical support to Leasing Consultant Team for handover date,handover condition,nomi-nated vendor supplier and others.5.Review Process and Contract NegotiationReview of the Tenancy Agreement by the tenants legal counsel,negotiation and final c

224、onfirmation of the contract documents with the landlord,signing of the contract and payment of the full deposit and initial rent,registration of the Tenancy Agreement(if required),and payment of related taxes and fees.Monitor the progress of landlord setup as agreed in the Lease Agreement;conduct si

225、te inspection before official taking over the rent space from landlord,provide punch and mon-itor the punch list rectification process until acceptance.Purchase the service provider of project management,interior design consultant,engineering design consultants,and drive the design process as per cl

226、ient needs and specifications.Tender for the fit-out contractors,furniture and any other long lead items.Apply construction related authority approv-als and standby for the construction.DeliveryFit-out Period,Project ManagementOffice Area (sqm)Construction Period (Months)Drive project delivery as pe

227、r specification,time and budget Comply with authority approval and inspection requirement Ensure indoor air good quality 8,0003-4 months33RentUnitsqmRentQuoted on RMB/sqm(GFA)/month in most of the cities,and RMB/sqm(GFA)/day in Shanghai and some cities in East ChinaCommon lease termMinimum 2 years(u

228、sually includes tenants option to renew at the market rate for 2-3 years);the standard lease term is usually 3-5 yearsFrequency of rent paymentsMonthlyCommon lease deposit (expressed as x months of rent)3 months rent and property management feesBasis of rent increase or rent assessmentBased on marke

229、t rent levels depending on negotiations between landlord and tenant(with rent caps in some cases)Frequency of rent increase or rent assessmentUsually upon lease renewal;for large tenants with leases over 5 years,rents are negotiated every 3 or 5 years.For other Tenants,lease terms depend on negotiat

230、ions between landlord and tenantRent and invoicing conventionMonthly rent payment Billing allocationThe entity listed as payable on the invoice must be the payerPaymentIn China,the payment is made based on the invoice issued.Service Fee,Operating Cost,Maintenance,and InsuranceService fee/management

231、fee obligationTenant liable,paid monthly in advanceAgency feesIn the case of a new lease,the landlord usually bears the agency fee,which is usually 1-2 months rent.The two parties can negotiate about the agency fee and then the developer will confirm the fees in the final document.Utility feesElectr

232、icity consumption is measured separately for each tenant,and the tenant pays the electricity fee and telecom fee;the water usage is included in the management fees.ParkingThe allocated parking spaces are limited;extra rent of parking space is collected sepa-rately on a monthly basis.Party responsibl

233、e for interior maintenanceTenantParty responsible for shared facilities (such as reception desks,elevators,and stairs)LandlordParty responsible for external/structural maintenanceUsually the landlordParty responsible for buildings insuranceUsually the landlordOperating expense reconciliationNon-Conv

234、entionalOperating expense paymentsNon-ConventionalAudit RightsTenants have no audit rightsTaxStamp Duty LiabilityEach party is responsible for stamp duty of 0.1%of the total priceLocal property tax liabilityPaid by landlordVAT/GST liability payable on rent and service chargesFor office buildings com

235、pleted before or on May 1,2016,the VAT rate on rent is 5%or 9%.For office buildings completed after May 1,2016,the VAT rate on rent is 9%.Disposition of Lease ContractTenants right to sublease and transferNormally only subleases or transfers to affiliates of the tenant is accepted,no subleases or tr

236、ansfers to unrelated third parties(varies based on landlords approval)Tenants right to early termination This is only applicable for the lease contract with lease termination clauses,otherwise,the tenant will receive a penalty.Liability for restoration after lease expiration The office should be res

237、tored to its state before the leaseTenants legal right to renew the leaseDependent on negotiations between landlord and tenant Tenants rights to retain when the lease term endsTenant has priority to lease the space under the same condition.Tenants right to renew a lease contract without options to r

238、enewTenant has priority to lease the space under the same condition.Tenants early termination right regarding a lease contract without lease termination clausesThe tenant must compensate the landlord for the loss caused by the early termination.General Standards for Chinas Office Market34Definition

239、of Office AreaTenants should pay attention to the usable area of an office area so that they can accurately compare the costs of alternative options.Definitions and concepts commonly used by the landlord are as follows:GFAEfficiency of about 65%-75%GFA includes all areas within the exterior walls of

240、 each floor and the full thickness of the exterior walls.Including:Restrooms Pillar service access/safety stairs Elevator room/safety stairwell Machine room/service room Foundation standpipe/all interior walls Elevator shaft(rentable area)Rentable AreaEfficiency of about 78%-95%The rentable area on

241、a floor includes restrooms and elevators but does not include elevator shafts,machine rooms,and smoke-proof staircases.Including:Restroom Pillar Elevator Escape stairIn addition to those listed in GFA,it also does not include:Machine room Ladder escape Elevator shaft(usable area)Note:Tenant may enga

242、ge a professional organization to verify the net area provided by the landlord.Usable AreaEfficiency of 100%Usable area refers to the usable area inside a building,but it does not include pillars,restrooms,and elevators.For a tenant leasing a whole floor,the usable area does not include pillars but

243、includes restrooms and elevators.In addition to those listed in GFA and rentable area,it also does not include:Restroom Fire escape Ladder escape Machine room Elevator shaft PillarOffice Area35Shape the future of real estate for a better worldFor over 200 years,JLL,a leading global commercial real e

244、state and investment management company,has helped clients buy,build,oc-cupy,manage and invest in a variety of commercial,industrial,hotel,residential and retail properties.A Fortune 500 company(ranked 190th in 2023)Over 300 corporate offices in more than 80 countries and over 103,000 employees worl

245、dwide Revenue reaching USD 20.9 billion in the fiscal year 2022JLLs professional services cover the entire life cycle of real estate projects.These include land planning,project design&construction,leasing&operations management,and asset valuation&transaction.Our servicesConsultancy&AdvisoryLeasing

246、TransactionInvestment&Capital MarketsSustainabilityValuationProperty&Asset ManagementCorporate Real Estate Solutions36Customized Solution for Landlord,Agency and TenantAgentLandlordTenantDiChanDaDangIntegrated Platform of China Office Leasing ServiceRuijian DataOne-stop office market data analysis p

247、latformWe are the first one-stop office market data analysis platform in China,covering over 230 cities.We have gathered data from over 15,000 high quality office buildings and collected 4 years of historical data.With over 100 data indicators,our platform empowers landlords,developers,investors,ope

248、rators,and corporate tenants with intelligent analysis.We provide insights into the commercial and industrial office market across China,enabling users to make informed real estate decisions.Scan the QR code todiscover more Scan the QR codeto discover more onDiChanDaDang mini programCustomized for L

249、andlord,Agency and TenantEnhance Office Leasing Efficiency with WeChatCustomized e-option list Precise Property DataBuild CRE EcosystemComprehensive Property InformationDiChanDaDangcitiesCover almostprefecture-level citiesoffice buildingsCoversqmMulti-dimensional market analysisTracing major cities

250、nationwidedata indicatorsyearshistorical datam400+37Anny ZhangSenior Managing Director,China Leasing Managing Director,East China+86 21 6133 5427 Alex BarnesManaging Director,Hong Kong&Macau Head of Office Leasing Advisory,Hong Kong+852 2846 5125 Victor MarHead of Office Leasing Advisory,South China

251、+86 139 0301 3011 Alfred LiHead of Office Leasing Advisory,Shenzhen+86 135 1273 1752 Michelle LiuHead of Tenant Representation Services,Office Leasing Advisory,Beijing+86 10 5922 1279 Lu BaiHead of Landlord Representation Services,Office Leasing Advisory,North China+86 139 1041 8259 Hattie DengHead

252、of Office Leasing Advisory,West China +86 28 6680 5009 Kevin LiuManaging Director,Chongqing Head of Office Leasing Advisory,Chongqing+86 136 3777 3054 Ning LiuHead of Office Leasing Advisory,Wuhan+86 27 5959 2128 Jerry ChenHead of Office Leasing Advisory,Nanjing+86 8966 0660 William YouHead of Offic

253、e Leasing Advisory,Hangzhou+86 571 8196 5968 Joy HeHead of Office Leasing Advisory,Xian+86 29 8932 9800 William GaoHead of Office Leasing Advisory,Tianjin/Shenyang+86 22 5901 1999 Apple QuHead of Office Leasing Advisory,Qingdao+86 532 6600 9578 Daniel YaoHead of Research,China +86 6133 5456 Bruce Pa

254、ngHead of Research and Chief Economist,Greater China+852 2846 Mi YangHead of Research,North China+86 10 5922 1377 Silvia ZengHead of Research,South China+86 20 2338 8088 Jacky ZhuHead of Research,West China+86 28 6680 5137 Contact usJLL Office Leasing Advisory TeamJLL Research TeamJiemin WuHead of R

255、EIS China+86 6133 JLL WechatJLL Offices in Greater ChinaBeijing8/F China Life Finance Centre No.23 Zhenzhi Rd,Chaoyang District Beijing 100026tel+86 10 5922 1300Chengdu29/F Tower 1,Chengdu International Finance Square 1 Hongxing Road Section 3 Chengdu 610021,Sichuantel+86 28 6680 5000 fax+86 28 6680

256、 5096Chongqing45/F Chongqing World Financial Center No.188 Minzu Road,Yuzhong District Chongqing 400010tel+86 23 6370 8588 fax+86 23 6370 8598GuangzhouRoom 2801-03 Guangzhou CTF Finance Centre No.6 Zhujiang East Road Zhujiang New Town,Tianhe District Guangzhou 510623,Guangdongtel+86 20 2338 8088 fax

257、+86 20 2338 8118HangzhouUnit 802 T2,Raffles City Hangzhou No.228 Xinye Road,Shangcheng District Hangzhou 310000,Zhejiangtel+86 571 8196 5988 fax+86 571 8196 5966NanjingRoom 2201 Deji Plaza Office Tower 18 Zhongshan Road Nanjing 210018,Jiangsutel+86 25 8966 0660 fax+86 25 8966 0663QingdaoUnit 2308 To

258、wer A,COSCO Plaza 61 Hong Kong Middle Road,Shinan District Qingdao 266071,Shandongtel+86 532 8446 8816 fax+86 532 8579 5801Shanghai22/F HKRI Centre One,HKRI Taikoo Hui No.288 Shimen Yi Road,Jingan District Shanghai 200041tel+86 21 6393 3333 fax+86 21 6393 3080Shenyang21/F Shenyang Fortune Plaza Towe

259、r A,No.61 Beizhan Road,Shenhe District Shenyang 110013,Liaoningtel+86 24 3195 8555Shenzhen19/F Tower Three,Kerry Plaza 1 Zhongxinsi Road,Futian District Shenzhen 518048,Guangdongtel+86 755 8826 6608 fax+86 755 2263 8966TianjinUnit 3408 The Exchange Tower 2 189 Nanjing Road,Heping District Tianjin 30

260、0051tel+86 22 5187 4087WuhanUnit 3908-09 Heartland 66 688 Jinghan Avenue,Qiaokou District Wuhan 430030,HubeiTel+86 27 5959 2100 Fax+86 27 5959 2155XianUnit 2202-03 CapitaMall Office No.64 West Section of South 2nd Ring Road,Yanta District Xian 710065,Shaanxitel+86 29 8932 9800 fax+86 29 8932 9801Hon

261、g Kong7/F One Taikoo Place 979 Kings Road Quarry Bay,Hong Kongtel+852 2846 5000 fax+852 2845 9117 .hkMacauUnit H,16/F Finance and IT Center of Macau Nam Van Lake Quarteirao 5 Lote A Macautel+853 2871 8822 fax+853 2871 8800 .moTaipei20/F-1 Taipei 101 Tower No 7 Xinyi Road Section 5 Taipei 11049,Taiwantel+886 2 8758 9898 fax+886 2 8758 9899 .twJones Lang LaSalle2023 Jones Lang LaSalle IP,Inc.All rights reserved.All information contained herein is from sources deemed reliable;however,no representation or warranty is made to the accuracy JLL Mini Program