In H2 2022, Tianjin’s office market faced increasing pressure from tenants surrendering office space, causing net absorption to be negative for the first time in the past decade.
In H2 2022, Tianjin’s office market faced increasing pressure from tenants surrendering office space, causing net absorption to be negative for the first time in the past decade, reaching -59,000 sqm (-635,000 sq ft), for a total of 8,886 sqm (96,000 sq ft) for the year. The vacancy rate increased for the first time after two consecutive years of decline, rising 3.5 ppts HOH and 2.8 ppts YOY. Rents continued to decline, falling 5.8% HOH and 8.2% YOY to RMB72.8 (USD10.5) per square meter per month. We expect market competition to further intensify as new projects entering the market, and rents will continue to go downward.
