“The government and landlords are working to enhance the office tenant experience, strengthen tenant retention, and support corporate growth. They are also assisting enterprises with overseas expansion, legal consultation, digital transformation, and the streamlining of approval processes.”

JAMES MACDONALD, SAVILLS RESEARCH



Take-up Grows but Vacancy Rates Remain Elevated

• Three projects totalling 204,000 sqm were completed in Q3/2025, bringing the city’s total office stock to 20.3 million sqm.

• Net take-up reached 125,000 sqm in Q3/2025, exceeding the total for the first half of the year (112,000 sqm) but representing a 15.1% year-on-year (YoY) decline.

• Supply pressures continued to weigh on the market, with the citywide vacancy rate edging up 0.2 percentage points quarter-on-quarter (QoQ) to 23.8%. Vacancy rates in decentralised areas fell by 0.5 ppts QoQ, mainly due to positive absorption in Xuhui Riverside, Qiantan, and Wujiaochang–Xinjiangwan.

• Grade A office rents declined by 5.4% QoQ on an index basis in Q3/2025, averaging RMB 5.1 psm pday. Prime, non-prime, and decentralised rents fell by 5.1%, 5.2%, and 5.8%, respectively.

• Domestic companies accounted for 75% of tracked leases. Nearly half of all transactions were relocations, with demand led by the finance, information technology, and professional services sectors.

• Several submarkets recorded negative net take-up (i.e. a reduction in occupied space), including Old Huangpu, Yangjing, and HTH. This was likely due to tenants closing offices, downsizing, relocating to other submarkets, or consolidating into self-owned properties. Corporate restructuring and mergers and acquisitions may also have contributed.