“While the overall leasing market was relatively calm, some Tech Giants’ office relocation brought about disruptions to the market and, together with the impacts of new completions, the citywide average vacancy rate increased.”

CARLBY XIE, SAVILLS RESEARCH



Tech Giants’ moves weigh on the market

• The total stock increased by 4.5% YoY to 11.7 million sqm by end-Q2/2025 as a result of new completions of 352,439 sqm office space during 1H/2025.

• The leasing market was generally calm despite certain transactions. Most landlords claimed constrained leasing inquiries and site visits.

• Some tech giants continued to execute their CRE strategies, relocating to their self-owned premises. This created disruptions in the Shenzhen office leasing market and, together with the impacts of new completions, pushed the citywide average vacancy rate to increase by 0.8 ppt QoQ to 30.6% by end-1H/2025.

• Leasing demand from information technology, artificial intelligence, semiconductor, and software service enterprises remained resilient.

• Rental performance remained under pressure and the citywide average rent of the Shenzhen Grade A office market slashed by 4.5% QoQ on an index basis to RMB140.2 psm per month.

• A couple of new completions with a total office GFA of 122,636 sqm will enter the market in Q3/2025.