East China Tier II Cities Office Market: Recovering economy spurs leasing demand
In H2 2021, with the economy in Tier II cities continuing to improve and only sporadic Covid outbreaks, the office market was stable and leasing demand continued to rise, with absorption continuing the steady recovery. Leasing demand in the TMT and financial sectors continued to expand while that for professional services was relatively stable.
- Surging supply and high vacancy rates resulted in a market that still favors tenants. We recommend landlords offer more flexible leasing terms and provide furnished office space and more competitive rents to tackle future challenges.
- We also recommend landlords pay more attention to the potential needs of tenants especially in the TMT and financial sectors and improve the quality of their building services.