CBRE has identified Nanjing 's prime office market as an emerging area with great potential for growth. The market has been booming since 2002, with a large new supply coming on stream annually. By the end of the first quarter of 2009, Nanjing 's prime office stock exceeded 1 million sm. This trend is set to continue, with a steady stream of high-quality projects upgrading and supplementing the current stock.

Economic growth, infrastructure development, and government support are also helping shape the development of Nanjing 's major office hubs. Nanjing boasts flourishing high-end services and high-tech sectors, with tertiary industry accounting for over 48% of its GDP. The city has experienced rapid economic growth, with five straight years of over 15% GDP growth annually from 2003 to 2007. Both industry and commerce have flourished in terms of industrial value and total retail sales.

Nanjing also has a strategic position in East China, and is playing an increasingly important role in extending the economic development of coastal China . To further this role, it is improving its infrastructure links both within the city and the region. Initiatives include high-speed regional and nationwide railways conjoining in Nanjing , as well as intercity railways between Nanjing , Shanghai and Hangzhou that will form a one-hour business and living circle in the Yangtze River Delta. There will also be a metropolis circle linking up Nanjing with nearby cities by expressway, railway and waterway. All of this will bolster Nanjing 's status as a regional centre in the western Yangtze River Delta, providing a strong impetus for sustained demand for its office property.

A survey of Nanjing 's prime office future supply shows that the proportion of high-quality office developments has been rising significantly. In addition, the trend of ownership is transitioning from the strata-title sale mode to the holding strategy of new prime office developments, which will elevate the property management level and attract more top occupiers, thus supporting a rental upswing. Although the average rental of Nanjing's prime office market is currently lower than first-tier such as Shanghai and Beijing, it holds its own against other second-tier cities in China, and is moving into a top position amongst its competitors.

In the future, exciting new projects in the Xinjiekou CBD area will guarantee the sub-market's continued leading position amongst Nanjing 's office hubs for some time. Other up-and-coming districts include the Gulou-Shanxi Road office hub and an important emerging office hub, Hexi Business District. With landmark pipeline projects by prominent developers, governmental preferential policies, and continued improvement of business facilities, Hexi Business District is set to become one of Nanjing 's top office sub-markets in the long-term.

Despite the current economic uncertainty and relatively high vacancy rate in the market, Nanjing has displayed solid growth set to continue in the future, which will underpin the long-term development of its prime office market. CBRE sees opportunities for investment in Nanjing 's prime office market.