2023 China Office Leasing Guide
In 1H2023, the stock of Grade A offices in 20 key cities including Hong Kong in China totaled 94.47 million sqm, mainly concentrated in tier 1 cities (Beijing, Shanghai, Guangzhou, Shenzhen and Hong Kong), which recorded 52.20million sqm. By the end of 2024, these 20 cities will contribute up to 14 million sqm of new offices, representing about 15% of the current stock. Shenzhen, Shanghai, Guangzhou, Hangzhou will be the main contributors. China’s post-COVID reopening led a strong pickup in economic growth in early 2023. While after accelerating for the first quarter, the 2Q23 recovery fell short of market expectations. Many companies adopted relatively conservative real estate strategies and remain sensitive to office leasing costs. This has to some extent hindered the pace of recovery in leasing demand. At the same time, the pressure from new supply continues, further pushing up the vacancy rate in the market.