Shenzhen city’s office vacancy exceeded 24% for first time since end of 2020
DATA REAL ESTATE
Shenzhen city’s office vacancy exceeded 24% for first time since end of 2020
DATA REAL ESTATE

Shenzhen city’s office vacancy exceeded 24% for first time since end of 2020

 

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The vacancy rate of Grade A offices in China’s technology hub of Shenzhen reached 24.5% by mid-2023, rising by 1.6 percentage points from a year earlier, according to commercial property firm DTZ, exceeding 24% for the first time since the end of 2020. 

In the first half of 2023, the city saw an additional 457,000 sqm of Grade A office space, which brought the total office space inventory to 7,770,800 sqm, showed the data.

During the period, net absorption reached 229,000 sqm, which rose by 37.5% from a year earlier, but only accounted for half of the new supply. 

Nearly one million square meters of Grade A office space is expected to be put into operation within 2023 and the city’s office vacancy rate will rise further in the next two to three years, said DTZ.