Business service, finance and TMT were the top three demand drivers
•In 2022, the market sentiment is reserved and cautious because of domestic and foreign economic environment. Chengdu Grade A office have fallen into the slump in demand, with the net absorption of 31,100sq m(334,600sq ft) in Q4 and the total net absorption of 86,900sq m(935,000sq ft) in 2022 which was 53% lower than 2021.There were five new projects launched with 412,300sq m(4,436,300 sq ft) in 2022 ,which push the city-wide vacancy rose 0.4pps QOQ to 22.7%. The largest proportion of newly leased space were the business service(39.0%), finance (29.4%) and TMT(13.0%) sectors. The total GFA is 3.76million sq m.
•Due to a lot of new supply and the softer demand in 2022,, the average face rent decreased 2.1% QOQ to RMB100.9 (USD14.6) per square meter per month.
•With the release of covid policies, the cold winter by the covid will eventually pass and we expect to take a turn for the better in 2023.