“In 2025, annual new supply reached 358,000 sqm, marking a sharp YoY increase. By year-end, the average vacancy rate rose to 42.7%, a new record high, while the pace of rental correction accelerated through the year.”

James Macdonald, Savills Research



Supply cycle intensified; annual take-up improved

• In 2025, Wuhan’s Grade A office market recorded 358,000 sqm of new supply. By end-Q4/2025, total Grade A stock reached 3.23 million sqm.

• Net absorption totalled 75,000 sqm in 2025, up 49.5% YoY. Demand was led by the service sector (31.4%), while manufacturing continued to gain share.

• Rental correction accelerated in 2025, improving affordability and supporting occupiers’ upgrade and relocation decisions. Upgrades and relocations accounted for more than 70% of total leasing demand.

• By end-Q4/2025, the average vacancy rate rose 4.5 ppts YoY to 42.7%. Average Grade A office rent fell to RMB 73.8 psm pmth, with the rent index down 10.1% amid weaker expansion demand.

• Landlord competition is increasingly being expressed through incentives and flexibility (e.g., more aggressive commercial terms and value-added services to defend occupancy), rather than relying on headline rents alone.

• New supply is expected to remain elevated in 2026 at approximately 339,000 sqm, likely intensifying competition and potentially reshaping performance across submarkets.