“In Q4/2024, Tianjin Grade A office market remained sluggish with slow absorption and declining rents. The narrowing rental differentials between projects have compelled landlords to offer preferential business terms, upgrading services and customized solutions to meet tenant demands. With the anticipated increase in market supply over the next two years, short-term vacancy rates are unlikely to decline. Landlords need to actively adjust their leasing and operation strategies to respond to industry trends and evolving tenant demands.”

VINCENT LI, SAVILLS RESEARCH



Tianjin office market activity declines

• In Q4/2024, no new projects entered the Grade A office market in Tianjin. The total stock stood at 1.72 million sqm by the end of this quarter.

• In Q4/2024, impacted by tenant downsizing in non-prime submarkets, the Tianjin Grade A office market recorded negative absorption.

• Leasing demand from the insurance and logistics sector was particularly strong in Q4/2024, becoming the most active sectors in leasing transactions during the quarter.

• The overall citywide Grade A office market vacancy rate grew 0.7 percentage points (ppts) quarter-on-quarter (QoQ) to 34.9%, up 0.3 ppts year-on-year (YoY).

• Citywide rents fell to an average of RMB 101.0 psm pmth, with rental index down 2.1% QoQ and 6.4% YoY. The Nanjing Road area, where competition is particularly fierce, saw the largest quarter-on-quarter rental index decline of 6.3%. • In 2025, the Tianjin Grade A office market is expected to welcome several new projects, which will bring more options for tenants but intensify market competition.