Shenzhen Grade A Office Vacancy Rate Declines Driven by High-Tech Industry

TAIPEI (CNA) - Shenzhen's Grade A office vacancy rate fell by 1 percentage point in the second quarter of this year compared to the first quarter, marking a continuous decline for three consecutive quarters. Industry experts attribute this to the leasing demand supported by the development of high-tech industries such as artificial intelligence and smart hardware, indicating the overall market is entering a recovery period.

Grade A offices refer to high-end office spaces, generally located in central business districts or convenient commercial areas within cities. These spaces boast excellent hardware facilities and professional property management, with many serving as local landmarks.

According to a report by Yicai Global on the 8th, with the booming development of high-tech industries, demand for Shenzhen's Grade A offices has rebounded, and the vacancy rate has decreased.

Statistics from the real estate professional services firm Jones Lang LaSalle show that Shenzhen's Grade A office market added four new office projects in the first half of this year. Benefiting from a structural rebound in demand, the vacancy rate in the second quarter dropped by 1 percentage point compared to the first quarter. This represents a cumulative decrease of approximately 1.5 percentage points since the end of 2025, with the vacancy rate showing a downward trend for three consecutive quarters.

Huang Shuli, Deputy Managing Director and Head of Corporate Services for South China at DTZ, stated that with the expansion and upgrading of industries such as artificial intelligence, semiconductors, advanced materials, and biomanufacturing, enterprises are continuously releasing office demand for headquarters layout, R&D center establishment, and team expansion, injecting growth momentum into Shenzhen's Grade A office leasing market.

Statistics from Jones Lang LaSalle indicate that rents for Shenzhen's Grade A offices cumulatively decreased by approximately 3.4% in the first half of this year. The decline in the second quarter was 1%, a narrower drop than in the first quarter, showing improvement for two consecutive quarters. Li Wenjie, Managing Director of Jones Lang LaSalle South China, commented that after a period of deep market adjustment in recent years, Shenzhen's Grade A office market vacancy rate has improved and is gradually entering a more rational recovery period.

Jones Lang LaSalle predicts that against the backdrop of improved demand expectations and the phased release of vacancy pressure, landlords are becoming more cautious about further significant rent reductions. Tenants, on the other hand, are primarily focused on cost control, aiming to reduce expenses through lease renewals, relocation negotiations, and optimizing space utilization. It is estimated that the full-year rent decline for this year is expected to be narrower than in 2025. (Editor: Zhou Huiying) 1150708

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