“In Q2/2025, the Tianjin Grade A office market faced tough circumstances like slowing demand, declining rents and sustained absorption pressure. The pressures from existing vacant space and new supply will intensify the competition in 2H/2025. However, the operational innovations and improved amenities in the office buildings are considered the key to breaking through the downward cycle.”

VINCENT LI, SAVILLS RESEARCH



Tianjin’s office market remains under pressure

• In Q2/2025, no new projects entered the Grade A office market in Tianjin. The total stock stood at 1.66 million sqm at the end of this quarter.

• Impacted by tenants’ downsizing in non-prime submarkets, the Tianjin Grade A office market recorded negative absorption in Q2/2025.

• The Information Technology and Professional Service companies showed strong demand in Q2/2025, becoming the most active sectors in leasing transactions during the quarter.

• The overall citywide Grade A office market vacancy rate grew 0.3 percentage points (ppts) quarter-on-quarter (QoQ) to 35.1%, and up 0.6 ppts year-on-year (YoY).

• Citywide rents fell to an average of RMB 94.4 psm pmth, with the rental index down 6.0% QoQ and 9.7% YoY respectively. The New Badali area, where competition is increasingly intense, saw the largest QoQ rental index decline of 9.0%.

• In 2H/2025, the Tianjin Grade A office market is expected to welcome an influx of new projects, which will bring more options for tenants but intensify market competition.