“Although occupier sentiment improved and leasing activity picked up in Q1/2026, most landlords remained cautious, offering highly competitive terms to attract tenants amid continued market pressure.” —— Carlby xie, RESEARCH



Vacancy falls for two consecutive quarters

•Shenzhen’s GDP reached RMB3.87 trillion in 2025, up 5.5% YoY, marking the fastest growth among China’s four first-tier cities.

•The absence of new supply, alongside the withdrawal of some office space through hotel conversions, led to a 0.3% QoQ decline in total Grade A stock to 12.81 million sqm by end-Q1/2026.

•Net absorption totalled 131,000 sqm in Q1/2026, up 25.0% YoY.

•The citywide vacancy rate declined for the second consecutive quarter, falling by 1.2 ppts QoQ and 0.7 ppts YoY to 30.1% by end-Q1/2026.

•Relocations remained the dominant source of demand in Q1/2026, accounting for nearly 70% of total leasing transactions.

•The Grade A office rental index fell by 1.1% QoQ and 8.8% YoY, with average rents at RMB131.1 psm pmth.

•A new supply peak is expected in 2026, with completions projected to exceed 2 million sqm, pushing total stock up by 17.6% YoY by year-end.