What is an office building?

We all know Mo Chun relatively well about China Trade Center, because his previous publicity was all about challenging the International Trade Center. I was thinking about the topic we just talked about. Later they also said that the supply and demand of office buildings in the east this year are good, but the west seems to be not so good. It can be said that the sun rises in the east and rains in the west. Today we invited The only project in the west, we want him to respond to this statement, the CEO of Desheng Real Estate.

Wang Chong, maybe my speech on this issue is not convincing enough, because I don’t think I am a project in the west, because I am in the Deshengmen area, which is the North Second Ring Road and belongs to Xicheng District. I think in fact, when it comes to the office market, what you just said has the characteristics of Beijing. Beijing is indeed too big, with so many business districts distributed in the east, west, north and south, but you will find that each business district is not a simple copy. CBD, Zhongguancun, Financial Street. This is a business district with different types and characteristics. I think the subtext of a business district is business opportunities. Office buildings are spaces that can be productive in this place. In our planning meeting, we said, what is an office building? , The office building is a space where productivity is brewed and activated, which is different from living and working in peace and contentment. The business opportunities in each area are key when positioning your project. Find out the business opportunities in your location. When people come to you to buy and consume your office space, what business opportunities will it bring to them? You must find out the decoding.

Wang Chong, General Manager of Yixi Real Estate

Wang Chong We are located in Deshengmen, Central Axis Road, North Second Ring Road, neither relying on the CBD, nor Zhongguancun, and the Financial Street It is a situation that we are fortunate to be classified within an administrative jurisdiction. We calmed down to study our products, and I found that Mr. Pan’s views were consistent with our research. There are many domestically funded and growing companies in the Second Ring Road area, and the North Second Ring Road area where we are located has not had any distinctive writing for a long time. space to market. Another one, what we call a growth company, its growth experience is not from one to a hundred all at once. Its upgrade is a gradual improvement. Every growing company wants to become the leader of an industry. I also dream that one day I can dominate the real 5A-class, A-class, or landmark buildings, but the development of the enterprise is an objective reality. Therefore, he needs office space products at different levels to suit the growth of his company.

Wang Chong Xicheng District, these growing companies, are not qualified in terms of hardware, because the cost of hardware is heaped in. He does not have the strength. He wants to be 5A-level, but his strength really cannot bear it. His company The strength is not great, but the company's mentality, ideals, and dreams are very high. The culture and appearance must not be different from any 5A-level office buildings. So in this regard, the dignity of a growing company, this is the breakthrough direction of our company. For this reason, we are positioned in the Chinese style. After all, our facade is in the 21st century. Our facade pursues fashion, but our public area is all in the new Chinese style, that is, using city wall bricks. , these artifacts come to make this feeling.

Wang Chong At the same time, we also did a trick, transforming the Deshengmen Gate Tower into a one-on-one cooperation with our company, and turning it into a clubhouse for our company. Now the cultural relics district itself is also operating, because it is a public institution, and it is actually operating, but its operating status has always been at a low level such as selling fake coins and receiving kickbacks from tour groups. We put forward a slogan with the district government to build it into a place for high-end political and business cultural exchanges. This does not mean that we will have a big meal here. China is becoming more and more internationalized, but in the international exchange space it is not always emphasized how modern I am. National things, your national cultural heritage is your real strength, so in this regard, we include our cooperation with the Xicheng District Government. This proposal has been submitted to the Xicheng District Government and has been finalized with the Cultural Relics Bureau. We want to Shengmenwai Street was renamed Desheng Avenue. In terms of cultural creation, it gave confidence and dignity to traditional enterprises in this area.

Wang Chong: Because of these companies, the companies around us in Xicheng District, if they defect to the Zhongguancun business district and CBD business district, it means that they are born and raised in the place where they have mature industrial and commercial relations. They gave up their relationships with industry, commerce, taxation, and government, and returned to Haidian District to build some new relationships. This was very costly for their operations. Therefore, they hope that there will be a business space that can suit them, reflect their success, and reflect their growth in a local area that they are familiar with.

Therefore, we neither go to Zhongguancun to grab customers nor go to the CBD to find customers. We only need to digest these growing local companies.

Wang Chong In fact, the number of customers we are currently dealing with has exceeded 50% as soon as we opened the market from August 8 to now, and the companies that come to buy are all from the surrounding areas. We are now The price is 10,200, and it has just exceeded the 10,000 line, so I don’t dare to. Our starting price was 8,500, and it rose very quickly and very quickly. When we subscribed for such a day, this approach was a bit excessive. Looking back now, it was a bit excessive. On the day of subscription, the price was adjusted three times in a row, from morning to noon to afternoon. For our customer base, the North Second Ring Road area is a blank market. We are based in Beijing and Beijing culture. Culturally, we want to learn from Zhongguancun and CBD. In terms of hardware, cost, and selling price, we must be realistic with our regional customers. Purchasing power matches. When it comes to internationalization, no matter how loud our voice is, we will be drowned by China's trade and wealth, and we can't compete with Zhongguancun. We talk about how big our place is and how big the business district is. This business district has been clamoring for so many years, but it has no characteristics. We are just based in Beijing. , Beijing’s culture, so it’s Chinese style. Nowadays, the new architectural style has become popular in the architectural world, but it cannot be simply copied. Going back to the Ming and Qing dynasties, it is necessary to use the simplicity of the Ming style and many aesthetic philosophical thoughts and ethical and moral thoughts to create office buildings of this era.

Wang Chong, I am very happy today. I have the same feeling as Mr. Wei, which is very firm. I have confidence in our market positioning. Originally, I was in the game, learned about it, and was organized by the Morning News. After listening to the experts at this meeting, I felt their judgment on the market through their explanations of the project. I feel that we still need to stick to our positioning.

Chen Xi I once chatted with several scholars in the field of architecture. They were also considering the development direction of the Beijing office market. They had a point of view that land plots that are already very strong and supportive, like the CBD , Chang'an Street area, and some areas, he needs some good communication and creation with the surrounding cultural ecology. In this case, the ecology there is better, and the way out for office buildings will be found. In this aspect, it can fit some of their views.

Mo Chun is in line with the theme of today’s forum, architectural style, mentality, and cultural integration. I think this includes how we make good use of the ancient buildings from the past, the Deshengmen Gate Tower. The project of Nanxincang makes use of a nearby 600-year-old ancient granary, which was the royal granary at that time, and puts it into dialogue with new architecture and combines it with architecture. This is a new approach and new architecture. expression of style.

Hou Shoufa, I just took a look. Among the projects here, I am the only one in the west. Everyone is from the east, and our project is opposite the People's Bank of China.

Pan Minglang, I think it can be like this, because this is for office building innovation, everyone can let go, stop talking about their own projects, and also jump out of their own projects, otherwise, they will become into project publicity meeting.

Hou Shoufa doesn’t completely agree with what Mr. Pan said about the east-west distance. He said the east is hot and the west is cool. I don’t completely agree with this. I think the so-called hotness, I agree with Mr. Pan on one point. The so-called hotness refers to the large circle around the CBD. This large circle has a relatively wide scope and many projects. In this sense, I agree with his point of view. Jianguomen Commercial District, Yansha Commercial District, the west side cannot be compared with the east side, because it was developed earlier. In this sense, I do think the east side is hotter. The business atmosphere in the east is stronger, because it started to be positioned as a foreign-related area, and the east is indeed hotter than the west. Including the current CBD planning, with an area of ??8 million square meters, how much can be done with it, not to mention office buildings, it will have any shape, so it is definitely different from the west.

Hou Shoufa considered it from another perspective, what is heat? The so-called hotness is that the purpose of building office buildings and apartments is to sell and rent them out, and the purpose of building products is to be recognized and accepted by the market. If you can't sell or rent, it's useless no matter how much the market recognizes you. In this sense, if we do not expand the land supply in the first west, it will be expanded outside the third ring road, outside the fourth ring road, and outside the fifth ring road. It is another concept. I am targeting the concept of the west second ring road and the financial street.

Pan Minglang, you are referring to your own part of the country, not the whole of Beijing.

Hou Shoufa On a small scale, the West Second Ring Road and Financial Street are no cooler than those in the east.

There are several characteristics here. First, in terms of land supply, Financial Street cannot compare with the CBD. The last piece of land is gone and the supply is limited. Second, the sales and rentals of the entire financial street are no worse than those in the east. I asked how much it cost per square meter, and he said don't ask how much it costs per square meter. Come back in two years to ask if there is a house. The monthly rent of Yuanyang is US$30, with the lowest being US$25. As far as I know, the average rent is US$28 or US$30. In this sense, it is no worse than that in the east. Another point of view is that the number of customers in the west may not be as large as that in the east, but the houses purchased by each customer are relatively large. You see, the China Banking Regulatory Commission bought a building of 50,000 to 60,000 square meters, the China Insurance Regulatory Commission bought a building of 50,000 to 60,000 square meters, and China Netcom bought a building of tens of thousands of square meters. The number of customers is not very large, but the amount purchased by each person is large.

Hou Shoufa is now talking to me about the four big companies in my project to grab a building to the east of me. These four big companies are not entirely state-owned enterprises. I can’t say who they are because they haven’t yet. The agreement signed is not entirely a domestic enterprise with a Chinese prefix, but also a foreign bank. So in this sense, I don’t think the market supply or market demand in the West is low.

Pan Minglang In fact, my point of view is that I have always believed that there is no problem in the Financial Street. What I am talking about is that to the west, Zhongguancun is under great pressure now. You are basically not a financial street now, but you are within the scope of a financial business district. There is definitely no problem with this scope.

Hou Shoufa's entire positioning of Zhongguancun was problematic at that time. If Zhongguancun was set to be located in Shangdi, it would definitely not be that pattern. As far as I know, the mayor has held countless traffic meetings in Zhongguancun, but nothing can be done, because the positioning was indeed a bit too close at the time. I just wanted to use universities and scientific research institutions, but they are actually a bit too close, so it would be better to go further out. But we don’t evaluate others, we only talk about the supply and demand relationship in the entire market.

Hou Shoufa’s apartment is the same. It opened on September 10th. The starting price was 15,000. It is now 16,000. 60% of it has been sold in the past two months, so I think the overall demand is still relatively large. Yes, the demand is still there, and the supply is limited, and there is basically no land available. Unlike in the urban area where you can expand outwards in the east, you are not allowed to demolish courtyard houses within the Second Ring Road. The supply is limited, but the demand is not small.

Chu Hongliang, General Manager of Wanheng Real Estate

Chu Hongliang Let me say a few words. In fact, I am here today on behalf of Wanheng Real Estate. Secondly, I want to say that I am fortunate to participate in the financial industry. There are two projects on the street, one is the earliest investment plaza, half of which is sold by Lida Bank as an agent, and the other half is sold by ourselves. Another project is the Netcom Building that Mr. Hou mentioned just now. That project was also developed by us. We sold it to China Netcom at the end of last year. The current headquarters is right in front of Mr. Hou’s building. Look at the speed of the parent’s safety center. So fast, watching your building grow upwards. Financial Street includes the west side. It should be said that in the entire business district at present, Financial Street, Zhongguancun and CBD are actually the hottest. The best market is not CBD, nor Zhongguancun, but Financial Street.

Chu Hongliang can see from one point of view that in the real estate projects on Financial Street, there is basically no sound, no advertising, and no communication with the media.

Pan Minglang, I think Zhongguancun business district, CBD business district, and Financial Street business district are not comparable at all. If we compare, let Financial Street go back to 1997, because it is a mature business district.

Chu Hongliang just mentioned by Mr. Hou, there are actually quite a lot of real estate in Financial Street, including the original China Netcom, and half of Fukai Building was sold to the China Securities Regulatory Commission, China Insurance Regulatory Commission, China Banking Regulatory Commission, including commercial banks. One building, the other in Financial Street, I can't bear to part with. I won't sell it to anyone who buys it. I must hold this one. Financial Street saw that my land was almost sold, so I had to keep some assets of my own, so no one could buy or sell the central building in the middle. China Netcom also talked with the Financial Street and wanted to buy it, but the Financial Street just wouldn't sell it. Our transaction price with China Netcom should not be lower than that of CBD.

Chu Hongliang Why do I say Financial Street is the best? First, its location is relatively small, and things that are scarce are more valuable. There is no land in Financial Street, and it is more difficult for other companies to enter the Financial Street, unless you are renting a property in Financial Street. Rent an office building in Financial Street.

Mr. Hou also mentioned just now that there are basically no houses in many real estates, including our investment plaza, which was developed in 1994 and probably completed in 1997. That building can only be regarded as a Grade B office building at present. In 1996 and 1997, it was The average price is about $2,500. Because these properties are sold en-bloc, they are not exactly the same as those sold individually. We are integrating both the above and underground prices, and the underground prices may also be averaged. You may feel that you have seen in the market, including the Financial Street’s own announcement, how much it costs to sell to the China Insurance Regulatory Commission, and how much it costs to sell to China Netcom. In fact, The profit is quite good, and we save a lot of marketing expenses.

Chu Hongliang, I don’t know how much the promotion expenses of Beijing Fortune are per year. At least I have seen R&F City’s advertisements, which can be seen in Beijing newspapers every day. During the sales process of Zhongzheng Building, we also sold in bulk for a period of time. Last year, we sold such a large deal to China Netcom, but the market did not dare to announce it. In the early stage, we sold more than 20,000 square meters in bulk. After signing the contract with China Netcom, , the biggest task is to clear out the existing buyers, which is much more difficult than demolition. Fortunately, all retail investors were cleared before August this year, so I dare to disclose this matter now. In fact, I feel that the most successful of these business districts is Financial Street. Financial Street also has the same problems as Zhongguancun did at the beginning. When concentrated occupancy began in 1997, the rent dropped to about US$12. Because there were many investors coming to buy at that time. At the beginning of 1994, Investment Plaza, State-owned Enterprise Building, Ping An Building, Yuetan and Wantong were all selling on the market at the same time, including Ping An Building. This pressure It's also very big. Moreover, the buyers at that time basically had no domestic capital, and the investment customers were all Chinese, Japanese, and Singaporeans from Hong Kong and Singapore. The recognition of the financial street gradually and naturally formed after a certain period of pain.

Chu Hongliang, Mr. Luo just said that Financial Street is not market-oriented. In fact, Financial Street is exactly a market-oriented behavior. It has a very good name: Financial Street, which takes advantage of the People's Bank of China in the south and the People's Bank of China in the north. Bank of China has built a financial street along the West Second Ring Road. This is a holding company established by the Xicheng District Government. It is now a listed company. It sells land to attract some investors to build it. What it does best is that it has the best volume control, and has a good ratio of self-use customers and investment customers. Real estate is also for investment and self-use. The land purchased by the construction company is for self-use. China Telecom and China Mobile are also for self-use. We combined some market-oriented real estate projects. At that time, our investment plaza and now our Zhongzheng Building were completely market-oriented projects. Our Chiang Kai-shek Building is run by a Hong Kong listed company, fully market-oriented, and the Financial Street only holds a very small share. We sold it to China Netcom without any financial subsidies from the government.

Chu Hongliang Xicheng District has introduced some financial encouragement policies, hoping to attract foreign banks and other domestic financial institutions to settle in the Financial Street, giving the Financial Street a more international image. There are certain subsidies for financial companies that rent properties on Financial Street, and there are certain subsidies for customers who buy properties on Financial Street. But as far as I know, the most common ones are that some time ago, Financial Street held a part of the press conference, and some of them were refunded. The total amount of money given to the buyer is more than 5 million yuan, which has a greater symbolic meaning for a buyer to buy a large market.

What was Chu Hongliang’s mistake in Zhongguancun? In fact, it lacks a self-use customer. From a local perspective, it is also a customer, and from a developer perspective, it is also a customer. Another one is that it lacks powerful developers, the plots are too narrow, and the planning is highly controlled and relatively rigid. I went to Zhongguancun two days ago to take a look. Basically, they are all buildings with an area of ??20,000 to 30,000 square meters. The only possibility is that the Zhongguancun Financial Center is more grand, and many other properties are the same. The developers are not very strong. The exterior facades come in all shapes and sizes, and the overall volume is relatively small, probably tens of thousands of square meters. At that time, Zhongguancun introduced large-scale developers such as China Central Place. In terms of a full-scale developer plan, it may be better than the current situation.

Chu Hongliang has another one. His supply is released intensively. Basically, these buildings are capped at this stage. During this stage of occupancy, his customer base is relatively small, resulting in a certain amount of competition. You lower the price and I lower the price.

I am familiar with a project in Zhongguancun, Yingke Building. It was originally priced at 15,000 to 13,000, and then 10,000 to 11,000 for existing houses. I took a look and found that the quality was very good, but it could not be sold. The original positioning was relatively high, and the price of the off-plan house he sold may be higher than that of the existing house.

Chu Hongliang came back to us and introduced our own project, which is closest to us. This project is still competitive with Mr. Pan and Mr. Wei’s projects, but it’s not particularly strong, and there don’t seem to be many customer conflicts. When we do this project, why do we move from the west to the east? We feel that there is no land left in the West Second Ring Road. We once had one. When China Netcom came to us to talk about buying a property, he only had two choices, one was Chang'an Street and the other was the West Second Ring Road. All the land on Chang'an Street is owned by famous people, and the land adjacent to the West Second Ring Road is also owned by famous people. To the north of Financial Street, not inside Financial Street, there is an international investment building. That property has no sound in the market. There was no advertising or press conference, and everything was sold out. So when it comes to Mr. Hou’s project, I think it may basically follow this path, because we often go to Guangdong for meetings, and you can see the construction progressing upwards from upstairs.

When Chu Hongliang was looking for a project, his first choice was Chang'an Street, then the West Second Ring Road. When the West Second Ring Road disappeared, he went to the East Second Ring Road. That's why we did the East Second Ring Road project at that time. The East Second Ring Road has a very good reputation. It is the largest transportation hub in Asia. Oriental Ginza has put a lot of advertisements in front of us. Dongzhimen area is relatively recognized by everyone. It is a high-end residential project and the contemporary Wanguo City. Dongzhimen is already well-known in the area. Dongzhimen is a high-end residential area, a new high-end residential area a generation after the west gate of Chaoyang Park.

Chu Hongliang and Mr. Ren also helped us. Mr. Ren gave up the land in the CBD and bought the land in Dongzhimen. This has its own reasons. We all have figured out a little bit about it. I I feel that our projects in Dongzhimen still have relatively good market potential. We should be capped on the 26th of this month.

Chu Hongliang We had always wanted to find companies like China Netcom in the early stage, but we made appropriate adjustments after the cap was capped. Before that, we did some research on the Dongzhimen area. There are now three business districts, CBD, Zhongguancun, and Financial Street. It is now divided into three areas, Zhongguancun in Huanding District, CBD in Chaoyang District, and Financial Street in Xicheng District. , what is there in Dongcheng District? In fact, Dongcheng District is currently building its East Second Ring Business Belt, but I feel that this name is not very nice and cannot compete with these names. I saw in the media two days ago that Contemporary City of All Nations proposed a national first business district. We are convinced that Dongzhimen is the national gate. After the largest hub in Asia is built, our ticket gates and airport ticket gates will be located in Dongzhimen in the future. The first stop from the airport to Beijing is at Dongzhimen, and the first step into Beijing is stand. We actually also made reference to Nan Xincang and New Poly, both of which refer to the concept of a business generation in the East Second Ring Road.

Chu Hongliang, I would like to find a time to communicate with several bosses. We can work together to give this area a name. In fact, you can see the East Second Ring Road. We are diagonally opposite the headquarters of PetroChina in the future. Directly opposite us will be the headquarters of Beijing Mobile, including Youth Hostel, China Railway Logistics, New Poly, and then Jianguomen, including Mr. Wei’s Huacheng Building. This line has actually concentrated many large-scale self-use properties, as well as some new business properties that can be launched simultaneously on the market. Its supply is just right. The competition is not very strong. Everyone's products have their own characteristics. I think if we cooperate, the East Second Ring Road business district might as well be called Guomen Business District. For whatever reason, I want to give it a name similar to Financial Street. , Dongcheng District can compete with Xicheng District, Haidian District, and Chaoyang District. Let’s create a hotspot area in Dongcheng District. This is what I think about it.

Chu Hongliang returned to innovation brainstorming and combined the characteristics of our own projects to introduce the small things we have done in traditional innovation. In fact, I agree with Mr. Luo's point of view just now, including everyone else's point of view. Office buildings are actually more regular and should not have too many bells and whistles, strange shapes, increase costs, and are difficult to use. In the properties we build, the client's favorite room layout is still square, with corners and sharp corners. From the perspective of his utilization and Feng Shui perspective, he thinks it is not good.

Chu Hongliang also has another point: the area of ??the entire floor will also affect the buyer's choice. At that time, we as investors were inspired by this point. Most of the real estate in Financial Street are only five or five meters in size. Thousands of square meters, as for the Qiaqia Investment Plaza, our simple area is 1,800 square meters, and it can be flexibly divided into two balconies, each with 900 sqm. Only with this in mind, we were the best-selling properties in Financial Street. At that time, in 1995 and 1996, the average price of the best properties was 2,800. The best real estate in Financial Street is the State-owned Enterprise Building. Basically, except for Huatai Insurance and his family, not a single inch has been sold. In addition to his own price positioning, it also has something to do with the layout.

Chu Hongliang, most of our buyers want the whole floor, and he thinks it is more suitable for me. Two thousand square meters, two floors, or one floor. At first, he bought one floor of 900 square meters. Later, he thought it was too small, so he bought another one. One floor was not enough, so he bought another floor. In fact, he only had It is four thousand square meters, but it occupies four floors. In terms of corporate image, it is very good. The advantage of our single-floor area has prompted many customers to choose investment plazas. As a result, the quality of investment plazas in Financial Street is the worst, and we sell the best properties. It can be said that now.

Chu Hongliang returned to our building. At that time, our building was not big, with only more than 50,000 square meters per square meter. We were also an integrated building. Later we made some modifications and changed it to It became two core buildings, and actually turned into two balconies. These two balconies are actually a whole floor, and a whole floor is 2,000 square meters. They are artificially divided into two blocks, one small block and one small block. The first floor is 600 square meters, and the first floor is about 1,400, 1,500 square meters. In terms of recent market feedback, it is very good. Customers feel that the area of ????our first floor is very ideal. Many customers say, I want 1500, I want 2000, so that it can become an independent whole, which improves the efficiency of use. will also improve. Why do many companies choose this kind of real estate? In many companies, if I have a separate floor and I hang a sign on five thousand square meters or two thousand square meters, it will be mine when I step out of the elevator door. This is different. This is an innovation in some small places. , this innovation is not new now, we did it in 1994. We did it unintentionally that time, but this time it was a deliberate product.

Chu Hongliang In addition, we have also done something about the utilization rate. The utilization rate of general office buildings is 68-75, which is more appropriate. Real office buildings are different from apartment-like commercial buildings. The lobby of our building is relatively sophisticated, unlike many that were built in the past, which were made as large as possible. Nowadays, the lobby of some office buildings is getting smaller and smaller, and is getting taller and taller, resulting in lower and lower usage rates. We did the opposite and compressed the lobby into a certain suitable space. This does not mean that there is no certain style, but there is still a certain style requirement. In fact, we have two lobbies, a small lobby and a large lobby. One is more than 10,000 square meters, and the other is more than 20,000 square meters. Our utilization rate has reached over 76, and the office building has reached over 76, which should be relatively high among many buildings. For the office buildings I have been working in for so many years, they are basically below 70. For this project, we achieved 76. When we promised, we were 76. These are some small improvements we have made.

Chu Hongliang also has another point: the new product we use, our building is the first in China to adopt a type of vacuum glass curtain wall. The glass we use is vacuum glass, which is basically double-layer insulating glass now.

Pan Minglang’s current ordinary residences are not hollow, but double-layered. The second is that the glass window wall is not a glass curtain wall. Jianwai SOHO uses similar materials of this type, and then the curtain wall. , the technical content inside is very high.

Chu Hongliang means that the insulating glass has a layer of anti-corrosion, and there is air in the middle of the insulating glass. The effect of vacuum glass is the same as that of a thermos bottle, and it is completely insulated from heat and noise. After the transportation hub is built in the future, everyone will feel that it is noisy. We use vacuum glass to effectively insulate, heat, and protect the environment and save energy. At present, the price of insulating glass is two to three times that of using insulating glass in Beijing. This is something we can effectively improve the quality of buildings. No other building in China has adopted it. We should be the first.