TMT occupiers are gradually transforming from market followers to leaders and becoming the core demand drivers in Tier II cities.
Dear Valued Client，
In H2 2020, the net absorption in East China Tier II office markets turned sustainably positive after being disrupted by COVID-19 in H1. We foresee vacancy rates remaining relatively high in H1 2021 with a supply glut in all four cities. We forecast office rents will decline in H1 2021, but the HOH rental drop is likely to narrow as landlords no longer use rent reduction to attract tenants.
In H2 2020, the net absorption in East China Tier II office markets turned sustainably positive after being disrupted by COVID-19 in H1. We foresee vacancy rates remaining relatively high in H1 2021 with a supply glut in all four cities. We forecast office rents will decline in H1 2021, but the HOH rental drop is likely to narrow as landlords no longer use rent reduction to attract tenants.
