Chengdu | 2022 Q2 | OFFICE: Finance, internet software & services, and business services drove demand amid a supply peak in Q2
Dear Valued Client,
• In Q2 , the demand declined 35% QOQ to 21,000 sq m (225,900 sq ft) due to a resurgence of Covid and the changing global economy and geopolitical environment. In Q2, the market saw a supply peak since 2018 with four new buildings providing a total GFA of 302,000 sq m (3.2 mil sq ft) of supply. These were located in Financial City, Dayuan and Dongda Street, pushing up vacancy 7.1pps QOQ to 22.6%.In Q2, we updated our database by removing obsolete buildings. Therefore, we record the total city wide Grade A stock at 3.7 mil sq m (39.8 mil sq ft). The average face rent decrease 0.1% QOQ to RMB103.6 (USD15.5) per sq m per month.
• To ensure tenants secure their most advantageous space, we recommend pre leasing in preferred building due to the large supply scheduled to come online.