“In 2024, landlords generally adopted rental concession strategies as the supply side was at low levels and the demand side was under significant pressure. It is anticipated that supply will pick up in 2025, and demand is unlikely to improve substantially in the near future.”

SOPHY PAN, SAVILLS RESEARCH



Rental concessions promote tenant upgrading and relocation

• In 2024, 30,000 sq m of new supply was delivered into the Chengdu Grade A office market.

• The average rent for Grade A office space fell 4.1% YoY to RMB96.5 psm pmth.

• A significant increase has occurred in the surrender of headline companies with leased spaces over 1,500 sq m.

• The top three sources of leasing transactions in 2024 were Finance, Professional services, and IT.

• Leasing demand for art education business increased significantly.

• Grade A office supply is expected to exceed 100,000 sq m by 2025.