Verbal promises are broken in a flash! Shenzhen Bantian East Xwang Building "forces" cross-border sellers to move out collectively

Since last year, the cross-border circle has been experiencing a chill.

The rents of high-priced office buildings that were once popular have also dropped sharply and the vacancy rate has increased . Shenzhen office buildings can no longer bear it , with the vacancy rate reaching 26.1% . According to statistics, about 90% of Shenzhen's Grade A office buildings will reduce their rents in 2023.

In such a market environment, there is an office building in Shenzhen whose rent has doubled , going against the trend.

Dong X Wang Building's rent increase has no bottom line! Relevant departments summoned and asked to reduce rent

Yien.com previously published an article on this matter: "Rents of cross-border office buildings in Shenzhen's Bantian area have doubled, and sellers are saying they can't bear it anymore!"

From now on, the problem has not been properly resolved, but is still continuing to ferment.

After the Yien.com reported the rent increase of Dong Xwang Building , Dong Xwang Building was interviewed by the National Security Bureau, Longgang Taxation Bureau, and relevant departments of Bantian Street and asked to reduce the rent. It was thought that Dong Xwang Building would negotiate with the seller in a friendly manner to reduce the rent, but who knew that all kinds of operations would make the seller dumbfounded.

The person in charge of DongXwang verbally promised a 10% discount on the rent, but then went back on his word!

After the rent increase incident was exposed, the person in charge of Dong Xwang communicated with some sellers and verbally promised that the rent could be discounted by 10%.

Many tenants are also collectively calling on DongXwang to introduce relevant rent reduction or exemption measures. Not long ago, more than 20 cross-border sellers jointly drafted a request, which included reducing rent, management fees, parking fees, etc.

1. Apply for rent reduction, from January 1, 2024, to 70% to 80% of the original rent (depending on the size of the area);

2. Apply for an extension of the lease contract, apply for a five-year contract, and specify the requirement that the rent will not increase in the first three years. If the rent needs to increase in the last two years, the percentage or specific amount of the increase must be stated in the contract. For existing contracts that have not expired, it is recommended to add a supplementary contract to offer a 70%-80% discount on the original contract amount and rent (depending on the size of the area);

3. Apply for a reduction in management fees. The park is a factory renovation, and the park price is appropriately reduced to RMB 2-4. The management fee is calculated by floor. For example, the first floor should not bear the elevator fee (some first floor tenants do not have elevator fees, and some do not have sanitation fees).

4. Apply for a reduction in parking fees. Currently, the park charges the most in Bantian, exceeding the temporary parking price of Tianan Cloud Valley. According to the parking fees in surrounding parks, and the monthly parking fees of office buildings in Futian, Nanshan, Bantian and other areas are generally between 100 yuan and 300 yuan, the parking fees are objectively too high. Apply for a renegotiation of the parking fee billing method to ensure the rationality and fairness of the charges.

5. Apply for exemption of water and electricity tax points and no surcharge on water and electricity charges, fair valuation, and calculation in accordance with national regulations. According to relevant tax laws, water and electricity generally do not need to pay tax points. Each tenant can record and deduct the water and electricity charges before tax with the water and electricity charges split slip. At the same time, the calculation method of water and electricity charges should be clearly specified in the application contract;

On January 3, more than 20 cross-border sellers gathered at the DongXwang Management Office to negotiate a rent reduction with Mr. Zheng, the person in charge of DongXwang, but Mr. Zheng avoided them. They had no choice but to hand over the agreement to the management of the property center.

I thought things would develop in the direction everyone expected, but then King DongX made all kinds of surprising moves.

The property management company ignored the seller's request and turned around to post the seller's listing on WeChat Moments, asking for a rent reduction!

On January 4, Dong Xwang Property Center contacted several sellers who had submitted rent reduction applications and asked them to renew their contracts. They also said that if they did not renew their contracts, they would bring new customers to see the office. The staff of Dong Xwang Property Center even posted the sellers' houses on WeChat Moments for rent.

The seller was puzzled and wanted to contact the property center to discuss the renewal issue. However, the property center staff suddenly changed their attitude and said that they were busy and wanted to sign a lease termination contract with the seller.

When the seller wanted to communicate with the property management company about the 10% rent discount that Mr. Zheng had verbally promised , the staff at the property management center directly replied that they didn't understand, they were not sure, and it didn't happen!

What is even more surprising is that there are sellers who have directly received reminder letters from DongXwang .

On January 22, the seller Kerry reported that he suddenly received a reminder letter from Dong Xwang.

The reminder letter mentioned that the seller had not paid the rent and other fees before January 5 as agreed , and the overdue time was as long as 18 days, which seriously violated the relevant provisions of the contract and constituted a serious breach of contract. The seller was required to pay liquidated damages to Dong Xwang at twice the daily rent amount until the actual repayment date. In order to prevent the loss from expanding, it is required to pay the above-mentioned overdue rental fees and the corresponding liquidated damages in full within 3 days from the date of receipt of this letter. Otherwise, Dong Xwang has the right to pursue its liability for damages and breach of contract. In serious cases, the leased property will be reclaimed.

Kerry said that his lease with Dong X Wang was due to expire in August this year. He had invested a huge amount of money in the company's renovation and planned to rent it for a long time. However, Dong X Wang violated the previous verbal agreement of 10% off the rent, and the company was affected by the fumes from the restaurant next door for a long time . He had no choice but to move out of Dong X Wang or sublet it when the lease expired .

The rent has doubled, the service has no lower limit, and many sellers plan to move out of DongXwang !

Affected by the global economic environment, the cross-border circle is also feeling the chill . Nowadays, as a necessary monthly expense, if the rent of the seller's office remains high or even continues to rise for a long time, the seller will sooner or later choose a new office space in order to save costs.

Albert , a seller who has worked in DongXwang for many years, said that he moved into DongXwang in 2017. At that time, the rent was less than 35 yuan/square meter . He planned to rent it for a long time and invested more than 500,000 yuan in renovation. He thought that the rent increase rate of DongXwang would be the usual 5% to 8% . Who knew that when the two-year lease expired and he was preparing to renew the lease in 2019, he found that the rent had risen directly to nearly 60 yuan /square meter .

Moreover, the lease agreement between Dong Xwang and the seller clearly stipulates that if the seller intends to terminate the lease when the contract expires, the original decoration must be restored. Failure to do so will result in the deposit being deducted.

Some sellers choose to take a loss and not pay the deposit in order to move out of DongXwang. After the sellers move out, DongXwang will choose to rent out the decorated office at a higher price.

There are also sellers who can’t stand Dong Xwang’s unscrupulous rent increases and would rather tear down the decoration to cancel the lease.

Due to the high cost of renovation and the need for employees to commute, some big sellers had no choice but to renew their leases. Unexpectedly, the rent of Dong X Wang has been rising, and now it has exceeded 100 yuan per square meter , which is significantly higher than the rent of surrounding office buildings.

After the big sellers were stuck with investing in renovations, they could only swallow their anger. Several sellers who had been introducing their friends to the store at the time were filled with remorse, saying that it was the most regrettable thing in their past careers, no doubt about it .

Another seller, Carl, faces the same trouble. He moved here in 2020. The initial rent was 80 yuan/square meter, but now it has risen to 90 yuan/square meter. In addition, he has to pay a management fee of 5 yuan per square meter.

The surrounding industrial parks have generally reduced their rents to 30%, 25%, 20%, and 15% of the original contract , but Dong Xwang has been raising its prices.

Under the influence of the market environment, in addition to the pressure on office rents, sellers ' logistics, raw materials and other costs have increased significantly, category demand has shrunk, market competition has become fierce, and profit margins have been further compressed.

The industry turmoil has made sellers nervous, and for those "shaky" companies, rising rents have become the "last straw".

In order to reduce the company's operating costs, many sellers who have offices in Dong Xwang are already looking for new office space and choosing more cost-effective office buildings to rent.

Many sellers complained that DongXwang Building only collects money but does not provide service. Small problems such as water leakage during rain or pipe rupture cannot be solved quickly and promptly.

According to the seller, the entire Dong X Wang property has no fire record. It is possible that the office building was converted from a factory building and could not pass the fire record procedures. The companies that moved in had to install fire protection facilities themselves (but they were not verified and certified by the relevant fire protection units). Most of the companies that moved in did not fully understand the situation of the office building and did not install fire protection pipes themselves, which undoubtedly increased the fire safety risks.

Many sellers who work in DongXwang reported that DongXwang's water and electricity charges have been increased. In addition to the additional loss fee, DongXwang's water and electricity charges also require invoices and tax points. According to relevant tax laws, water and electricity generally do not need to pay tax points, and each tenant can record and deduct them before tax with the water and electricity fee split slip.

With the rent doubling , unlimited services, and the ever-present safety risks, the person in charge of Dong Xwang Building chose to ignore the interviews and rent reduction requests from relevant departments and evaded direct communication and negotiation with the seller. Why did Dong Xwang do such a perverse thing?

Yien.com will continue to pay attention to the latest developments of the follow-up events of Dong Xwang Building.

Rent increase

Office Building