“Entering 2026, Guangzhou’s office market conditions remained broadly unchanged from 2025, continuing to favour occupiers. Leasing activity picked up in Q1, with more large occupiers taking advantage of current conditions to restructure leases and optimise their real estate costs.” —— Carlby Xie, RESEARCH



Leasing Activity Picks Up

•Guangzhou’s GDP grew 4.0% YoY to RMB3.2 trillion in 2025, while the tertiary sector increased 4.8% YoY to RMB2.4 trillion. One new Grade A office project, totalling approximately 68,000 sqm, was handed over in Q1/2026.

•Net absorption totalled 40,000 sqm in Q1/2026, broadly in line with the five-year quarterly average.

•Citywide Grade A office vacancy rates were up 0.1 ppts in Q1/2026 to 23.3%, up 2.3 ppts YoY.

•Leasing demand remained driven by relocations, renewals and lease restructuring, while expansion and new set-up demand was limited.

•Transactions were mainly concentrated in units of 300–500 sqm.

•The finance and retail & trade sectors were the main sources of demand, each accounting for around 25% of leasing activity. TMT demand remained stable.

•Grade A office rents continued to decline, with average rents at RMB118.0 psm pmth, down 3.8% QoQ and 7.9% YoY.