The basic process of renting an office building is:

1. Clarify the requirements of your company for office buildings, including which location, how many people to work in, and the budget provided by the company;

2. Find an intermediary and state your needs. Intermediary partners will select a large number of suitable housing options for preliminary selection;

3. Invite real estate agents to visit and review properties on-site;

4. Entrust intermediary partners to negotiate leasing conditions and bargaining prices for more interested housing units;

5. Intermediary partners assist property owners and clients in negotiating contract terms and signing contracts;

6. Coordinate with property management to start material entry and decoration; (The step of renting co working products can be omitted)

7. With the assistance of property management and decoration companies, inspect the fire safety situation; (The step of renting co working products can be omitted)

8. According to the previous contract agreement, move into the new office on a auspicious day.

Notes on Renting Office Buildings

1. The legality of the rental of office buildings by the lessor, such as property ownership certificate (or management right certificate), rental permit certificate, lessor’s business license, and legal person or legal person authorization certificate. If it is a sublease, the lessor shall provide its lease agreement and written proof of consent from the rights holder to sublease.

2. The payment standards and payment methods for rent, property management fees, utilities, and other related expenses should be clearly stated in the contract for renting office buildings in Shanghai, and the responsible party should be identified. When signing a contract, it is generally necessary to pay two months’ rent, two months’ management fees, and * months’ rent.

3. Pay attention to the agreed rent free period when renting office buildings. The delivered office buildings are usually unfinished, and some may have simple decoration, but the vast majority of tenants will renovate. The lessor often gives tenants a rent free period as their decoration time. Whether there is a rent free period and the length of the rent free period shall be agreed upon by both parties, and legal protection can only be obtained by writing it into the contract.

4. Property management fees, content, and payment methods should be clearly defined in advance. The rental of office buildings requires attention to property management fees, which are an important expense in addition to rent. The quality of the office environment and service in an office building is directly related to the management level of the property management company, and the fees charged by various property management companies often vary.

Precautions for choosing an office building

1. Lighting: mainly depends on the orientation and windows, whether they meet the office needs.

2. Ventilation: Check the density and power of central air conditioning.

3. House quality: whether there is water leakage, whether there are cracks, whether formaldehyde exceeds the standard, etc.

4. Surrounding areas: transportation, catering, etc; The surrounding office environment.

5. Public facilities: Check the quality, quantity, and usage density of elevators, as well as the availability of toilets.

6. Property service: mainly depends on the cleaning and security management situation.

7. Decoration situation: The decoration situation of a house directly determines the cost of decoration. Ideally, a bare house would be ideal, so that circuits, air conditioning, and partitions can all be made from scratch, creating something that suits the style of one’s own company. If you want to consider decoration costs, it is recommended to bring a familiar decorator to estimate the price.

I continued to read, and finally one or two pieces of information briefly explained the solution, but it still couldn’t solve the problem.

To solve this problem, let’s first take a look at the difficulties encountered during the process of subletting office buildings.

Who will take over the shipment?
What channels are available to find the next buyer to take over?
Why didn’t the next owner take over the property after looking at it?

After understanding these issues, it is highly likely that the problem will be resolved.

Coming to pick up the plate?

If you want to sublet this office, you need to first analyze your situation, 1. How long do you still have in the contract lease. 2. The contracted area, rental price (is it higher or lower than the current market price?), property management fee, whether the air conditioning is central or small (suitable for different customers), distance from the subway station, home decoration situation, furniture situation (huge selling point)?

Then summarize the situation in your office!

Based on the general market situation, the editor has summarized that when you choose this business district and building, in most cases, the tenants of the companies around you have the same demands and situations as you. In other words, the companies around you are also in similar situations, and it is highly likely that the event can accept the transportation, subway, commercial and residential facilities near your business district. So there is a high probability that your house will be rented to nearby tenants. Alternatively, it could be within your industry, such as in some areas where industries gather. Most of the companies in Caohejing Development Zone are engaged in software development, and those who are in a similar situation to you and happen to be able to accept the layout of your office are also likely to rent it.

2. What channels are available to find the next buyer to take over?

Subleasing an office, in this case, you are a bit like a seller in the sales position. Remember that this is a buyer’s market now. As a seller, you need to change your mindset and approach. Only by selling can you achieve performance. Holding to your own conditions, such as sublease fees, will only waste time. So how do we do this sales? A simpler, more direct, and cost-effective method is to print out the subletting situation of this office space on A4 paper, and then deliver advertisements door-to-door inside and near the building. Then I had my own industry groups, and I could also push some subletting messages within and outside the industry. Furthermore, increase the distribution of intermediary channel resources and sublet information, and indicate the commission amount in bold and enlarged. Under a heavy reward, there must be a brave man. Don’t just say, ‘Brother, help me sublet the house, the benefits won’t be less.’ However, if you don’t mention the benefits, there’s basically no chance. Compared with the sublease with large area and high total price, if you have money, you can make some headlines. Tiktok will advertise. Ha ha, it’s basically useless.

3. Why didn’t the next owner take over the property after looking at it?

Many methods have been tried, and the tenant has also come and looked at it. It’s okay, but there is no intention to rent. At this point, we should reflect on it. There are only two reasons why we couldn’t reach an agreement. One is that the price is too expensive, and the customer didn’t feel the discount. Why do they say that? For tenants who rent an office now, if any customer doesn’t scan the market through an intermediary company to see the market situation, it’s possible that your rental price is higher than other homes in the current market, which is embarrassing. So make sure to conduct market research. Secondly, I would like to give an example. If there are two houses in a building with the same area and decoration, one is occupied by another owner and the other is your sublet house, the agent will not recommend the client to rent your house. Ultimately, it’s all about money. So, as I mentioned earlier, if you want to sublet an office for a high reward, there must be brave men who come out to work and are all concerned about money. One agent didn’t recommend it, and the other agent didn’t recommend it either. There were originally 5 clients in the market, and one of them could rent your office. However, only one client came to see it, and based on this one client, they wanted to take it down. The difficulty can be imagined.

To summarize: If you want to sublet this office, we need to do some calculations:

If I breach the contract for this office, how much money will I directly lose, including 2-3 months of deposit and the remaining furniture for decoration. For example, 100000 yuan. Research how the commission for the office real estate agency industry in the market is paid. If one month’s rent is used as an agency fee, for example, 30000 yuan, at this time, if you want to sublet, you need to have a marketing budget of more than 30000 yuan (for agency fees, advertising fees, etc.). Only then can it be sublet. Otherwise, the loss would be 100000 yuan. Do you understand!

Since the golden year, with the gradual introduction of Jingyao Qiantan, Qiantan Times Square, Qiantan Oriental Plaza, and Qiantan Center to the market, the Qiantan International Business Center group has gradually risen. At the same time, this year, most of the large-scale leasing transactions in Shanghai’s entire Qiantan have occurred in Qiantan. Let’s take a look at which companies have occupied each project in the Qiantan International Business District?

Qiantan World Trade Center: Lujiazui Group Headquarters/Department, Jaguar Land Rover, Otis Elevator, Carrier Air Conditioning, DuPont

Jingyao Qiantan: Covestro, NIO, and Anjuke have leased 10800 square meters of office space in Jingyao Qiantan T7. Recently, Tieshimen sold an office building in Qiantan to TST Ting, a company founded by actors Zhang Ting and Lin Ruiyang, for RMB 1.76 billion.

Qiantan Times Square: Konica Meda (7000 square meters), cleaning (4000 square meters), Siemens China leased 18743 square meters in Qiantan Times Square this year, and the larger Mitsubishi UFJ Bank was named Qiantan Times Square.

Qiantan Oriental Plaza: Can Valley leases 8400 square meters in Phase II of Qiantan Oriental Plaza

Front Beach Center: PwC China leases 30000 square meters at Front Beach Center, Texas Instruments leases 10000 square meters at Front Beach Center, and Office Partners leases 5000 square meters at Front Beach Center.

Qiantan International Building: Deng Baishi

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According to CBRE’s report, Qiantan recorded a net absorption of approximately 34000 square meters in the second quarter of this year, ranking * among all important regions in Shanghai. According to CBRE’s research, by 2023, the newly added supply of Qiantan may reach 1.2 million square meters, of which two-thirds will come from relocation, 19.8% from Lujiazui, 13.5% from industrial parks, and over 20% from other areas in Pudong.

According to a satisfaction survey conducted by CBRE2019 on 741 employees of 11 Grade A buildings in Qiantan, 68.2% of employees expressed satisfaction with the newly built office building in Qiantan; 53% of employees believe that transportation to work in Qiantan is more convenient compared to their previous office location. 75.3% of employees said they would recommend Qiantan to friends.

Skyscrapers are generally not residential buildings, as residential buildings cannot afford such high maintenance costs.

Taking Shanghai as an example, the monthly property management fee for a 30 story A-level office building is 30 yuan per square meter, which means that a company renting an office of around 200 square meters would need to pay 6000 yuan per month for property management.

This is about the maintenance cost of A-level office buildings in first tier cities, which is not even a super skyscraper. If it exceeds 50 floors, the maintenance cost will skyrocket.

Why is it said that building too many buildings can lead to a recession? The logical line is simple: low interest rates stimulate economic growth – hot money floods big cities – limited land and large amounts of money give rise to buildings – soaring costs lead to a decrease in profit margins in various industries – giving up the idea of renting buildings – vacancy.

That is to say, even if nothing else happens, Thornton believes that the more buildings are built, the more they will trigger a recession, and he predicted an economic crisis in 2020 in 2018 because it is expected to be the year when Saudi Arabia’s skyscrapers are completed.

Recent news seems to be supporting Thornton’s viewpoint.

Firstly, the Samsung Tower, which has been built for almost 10 years, has finally been completed in the CBD core area next to the East Third Ring Road in Beijing. This Samsung headquarters building has approximately 100000 square meters of office space, amazing!

I specifically searched for information about this building, and it is indeed a super modern intelligent office building that integrates offices, hotels, and commerce.

However, how much business does Samsung Group still have in China? Can you use up this building yourself? If you can’t use it all up, you have to rent it out. But what is the current office vacancy rate in Beijing?

According to the data of Cushman&Wakefield, the vacancy rate of Grade A office buildings in Beijing reached 16.2% in the first half of the year, 7.3 percentage points higher than that in 2019, a new high in the past 10 years; The report from CBRE also stated that the net absorption of high-quality office buildings in Beijing in the second quarter was -38700 square meters, negative for two consecutive quarters.

There are many more people who are terminating their leases than renting, including Beijing Financial Street, and the vacancy rate is also rising rapidly.

It is reasonable to say that the attraction of the Financial Street to financial institutions is OK. After all, there are more important financial management departments in China, such as the People’s Bank of China, the China Banking Regulatory Commission, the China Securities Regulatory Commission, the China Insurance Regulatory Commission and other higher financial decision-making and regulatory institutions in China. Almost all major decisions about China’s finance are brewing, discussed and eventually formed here.

However, the current situation is that even the office buildings here are lowering their prices. Previously, properties priced at 18-20 yuan/square meter/day are now priced at 10 yuan/square meter/day, resulting in a rent reduction of 45-50%.

Beijing is like this, how is Shanghai?

Last year, someone predicted that the vacancy rate of office buildings in Shanghai would reach 27% in 2020, before the impact of the epidemic was anticipated. However, the current real vacancy rate is likely to have exceeded last year’s expectations.

Macro data is still too abstract, and I am willing to share with readers a few small things that have recently dealt with office buildings.

A friend’s studio is located in a relatively old office building near Shanghai Railway Station. He told me that the building, which was quite lively last year, has already been vacated by two-thirds this year. There is only one company left on the same floor, and this one used to have more than ten employees, but now there are only two or three left.

Another out of town friend is going to Shanghai to open a company and rent a building. The author accompanied them through many buildings, and now there are fully decorated and furnished office buildings near Jing’an Temple, with a rent of just over 6 yuan/square meter/day, plus property management fees. The monthly cost of a 200 square meter office is only about 40000 yuan. And every building we visited had rental properties, with a significant increase in vacancy rates.

The joint office, which was once sought after by capital, has also been repeatedly reported to have closed stores and withdrawn this year.

According to a report in the Economic Observer, in July of this year, a shared office space of nearly 5500 square meters in two floors was swallowed in one go at the Taiping Financial Building in Lujiazui. Due to excessive rental pressure and a continuous decline in occupancy rates, the tenant chose to terminate the lease and close the store.

As a first tier city, what is the situation in Shenzhen? Equally pessimistic.

The topic of vacancy rate in Shenzhen in recent years is not a new one, and a vacancy rate of over 20% is not something that has happened in the past year or two. The financial center Qianhai, which was once highly anticipated, had a vacancy rate of 65.7%, and most of the office buildings were empty.

Has the era of large-scale CBD construction in various regions passed?

The former office building was the daughter of the emperor who didn’t have to worry about getting married. It wasn’t you who picked the building, but the building picked you. Why is the current situation of office buildings so bleak?

I think there should be several factors:

One is the wave of company closures and remote work caused by the epidemic. Many companies disappeared directly during the epidemic, and some companies were surprised to find that remote work could also meet most job requirements. So it’s better to move to a smaller office after the epidemic ends;

Secondly, the overall environment is not favorable, and amidst the wave of decoupling, there are numerous similar news reports

Between October 2018 and 2019, Samsung successively closed its factories in Shenzhen, Tianjin, and the only remaining one in Huizhou;

Google publicly stated in August 2019 that due to high production costs in China, it would transfer its pixel smartphone production line to Vietnam in the future;

Microsoft also plans to transfer its production line from China to Vietnam. Starting from the second quarter of this year, Microsoft plans to produce Surface Pro and Surface Go, including the Go platter, in Vietnam.

Since production has decreased, the demand for service trade has naturally shrunk, and the demand for office buildings has correspondingly decreased.

Thirdly, there is an excessive supply of office buildings. Due to long-term low interest rates and high M2 growth, a large amount of hot money has flowed into first tier cities. In the past, when residential land was controlled, building office buildings was a good idea.

According to the “2020 China Real Estate Market Outlook” released by CBRE, the newly delivered area of office buildings in China in 2019 was approximately 7.4 million square meters, a historically high value. In 2020, the new supply of office buildings in China will reach a new high, reaching around 7.5 million square meters.

And what about the newly added absorption? In 2019, there were only over 3 million square meters, which means demand was less than half of supply. In the situation of severe oversupply, it is not surprising that the vacancy rate of office buildings continues to rise.

The “Skyscraper Index” proposed by Thornton integrates the theory of another economist, Lucas Engelhard, and believes that the key is to observe whether the CBD of first tier cities is actively building skyscrapers.

Due to low interest rates, high-income earners and hot money tend to gather in the CBD of first tier cities for various reasons, leading to a surge in land prices and the need to build higher floors. Since money is easy to borrow, even if it is not in a first tier city but in a remote area, one must work hard to build it:

For low – and middle-income groups, the impact in this regard is the opposite, also known as the “Cantillon effect” – under high inflation conditions, “first come, first served”, whoever seizes the newly issued currency first will take the lead, and those who enter later will have to face the fate of being cut off. After the last round of cutting off the leeks, the crisis will come.

Speaking of which, is it good or bad to directly send money to everyone? Does it have a positive effect?

Let’s argue with the viewpoint of supporting direct payment:

Step * depends on how much it costs to send?

What form should we send it in the second step?

If there is too little money and the stimulus for expanding domestic demand is not sufficient, the basic goal is to achieve as much as possible. Too much money makes it easy for ordinary people to deposit it in banks, which is not conducive to expanding domestic demand. Moreover, the national finance cannot support it.

Directly discovering that gold is less desirable is for a simple reason, which is that the use of funds is not directed and it is difficult to control whether they are used to purchase products; It is also feasible to distribute shopping vouchers, but attention should be paid to the difference between long-term and short-term. Shopping vouchers have no time limit and have the same effect as not distributing them. Having appropriate time limits is better, but it only treats the symptoms rather than the root cause.

In fact, domestic demand during a certain period of time can be seen as fixed, and only when ordinary people have spare money will they make extra purchases, which is the actual expansion of domestic demand. Idle money refers to funds that can be used without considering the opportunity cost of this portion of money.

The fundamental way to expand domestic demand is to improve the social security system and reduce the opportunity cost of funds in the hands of the people.

Let’s also argue against the viewpoint of directly issuing money:

After understanding China’s national conditions from an economic perspective and analyzing them in combination with the actual situation, it can be concluded that the claim that directly giving money to the people can stimulate domestic demand is unreliable and lacks accuracy.

Firstly, the method of directly sending money to the people is not feasible. Let’s think about where this money comes from, and the state does not have the right to directly print money to distribute to people. Moreover, this will directly lead to inflation. The money received will shrink, and when converted into the purchasing power of the entire market, it will be the same. In the past, people could buy how many goods with the currency they held. If you print more money and send it to the people, the currency will depreciate, and the total amount of goods that people can buy with the currency they hold will not change. Therefore, this method is not feasible.

Even if the government can directly send money to people, we still need to consider whether this money will be directly used to boost domestic demand. If you send this money to thousands of farmers, working class, and so on, everyone’s first reaction is to save the money, because in case of any major illness in the future, such as buying a house or having children go to school, the boosting effect on the entire domestic demand will be minimal.

Furthermore, even if everyone spends all their money and buys all the shoes, clothes, medicines, and other items they need to buy for the year within a month, they will not engage in significant consumption for the next six months. Such consumption will only stimulate domestic demand by drinking poison to quench thirst. The temporary peak of consumption will be replaced by a long-term off-season of consumption, which will have a worse impact on the economy.

Overall, I believe that directly sending money to the people cannot fundamentally stimulate domestic demand, and more policies and measures that are suitable for China’s national conditions need to be taken.

Let’s talk about the choice of most experts: don’t just send money, find ways to stimulate domestic demand is the key

Establishing a sound housing provident fund, social security, and medical insurance system is of utmost importance. People are only willing to spend their money when they feel that they have no worries;

Lowering deposit interest rates, lowering benchmark loan interest rates, and encouraging the development of small and medium-sized enterprises will make people unwilling to deposit money in banks. If we encourage the development of small and medium-sized enterprises and stimulate the growth of the ChiNext board, more people will be willing to invest their money in stocks, funds, and so on, which can revitalize the entire market economy;

Take more holidays, establish a good public holiday system, and combine national statutory holidays with each other. Holidays are the primary productive force that stimulates consumption. It is not uncommon for many middle-aged people to buy tens of thousands of yuan worth of things during a trip. Therefore, giving more holidays to the working class is also a truth;

Improving the quality assurance system, perfecting various supervision systems and accountability systems, as long as people feel confident in buying things, eating healthily, enjoying transparent service fees, and so on, they will be able to spend money with peace of mind. Otherwise, they will feel cheated everywhere, how dare they spend money;

Improving education level means that the more pyramid shaped people are, the more money they spend. If the overall education level can be improved a bit, the economic development it drives will not be just a little bit. Education drives the overall development of the tertiary industry, which has a much greater impact than just supporting the secondary industry. However, this is very invisible and few people will pay attention to it.

When renting an office, think about what quantifiable data you need to collect, such as the building’s grade? Is it a 5A Class A? What is the age of the building? The developer of the building? The property management company of the building? What is the specific price of the property? Property fees? Is the air conditioner a central air conditioner or a split air conditioner? Parking spaces and other related information, as well as photos and personal information of the property owners, can be found on our website at www.shanghaixiezilou.cn for specific real estate information! All the information you want is on the webpage, simple and clear.