In preparation for this report, we interviewed numerous major office landlords and identified a range of recurring concerns. Chief among these were how to attract and retain tenants, address prolonged vacancies and fragmented vacancy distribution, adjust rental pricing strategies, and manage policy-related risks. These issues represent just a portion of the challenges raised. Even projects with relatively stable occupancy levels expressed concerns over margin compression, driven by falling rents, rising operating costs, tenant demands for mid-term rent reductions, and the risks of over-reliance on a single long-term tenant. The overall sentiment among landlords is one of growing anxiety and an urgent need to overcome current headwinds.

China’s office market in 2025 is markedly different from previous cycles. Oversupply has become a defining feature, particularly in the near term. Vacancy rates in 13 major cities now exceed 25%. While core submarkets are holding relatively steady, emerging districts face significant pressure. The government has acknowledged the severity of the issue and introduced measures to rebalance supply and demand. Nevertheless, landlords are bracing for a prolonged struggle. In some cities, competition has already turned disorderly—generating short-term leasing wins but also leading to structural distortions in the longer term.

Differentiation is essential to recovery. Landlords need to leverage industrial upgrading and policy incentives to build ecosystem synergies and promote regional integration. Depending on their cash flow and operational strengths, they may choose to pass savings on to tenants or focus on providing value-added services. Other practical approaches include optimising tenant mixes, refining lease structures, and implementing demand-driven pricing models. Regardless of strategy, maintaining a high-quality base build remains the cornerstone of competitiveness. Equally critical is cultivating tenant loyalty to safeguard asset values. This can be achieved through initiatives such as regular data reporting systems, nationwide strategic partnerships, and customised tenant support.

Among the most common questions raised by landlords were those centred on demand: How is tenant demand evolving? Is a more diversified tenant mix always preferable? Where will future growth in office demand come from? To address these questions, this report analyses demand trends across ten key tenant industries and incorporates in-depth insights from local market researchers in ten major cities. Combined with the strategic recommendations and opportunity areas presented in this report—and supported by comparative case studies from other Asian markets—our aim is to help stakeholders collaborate towards building a healthier and more sustainable office market ecosystem.