As the focus of economic development policy turns towards the service sector and white-collar jobs, the total demand for high-quality office space will grow. Demand from domestic companies has already reached a tipping point and they are now the primary driver of the office market. Office space demand in China60 is focused on Tier 1.5 cities, where huge business activity and middle-class expansion are supporting the growth in high-value services. Oversupply has become an issue, but Tier 1.5 cities have considerable potential to absorb excess space over the medium term.
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