Limited new demand in the office market
Insights & recommendations
In H2 2022, the demand in Tier II cities was relatively weak. Vacancy dropped due to the delayed delivery of some buildings and the number of new buildings entering the market did not meet expectations. In addition, overall rent showed a decline due to relatively lower demand and the impact of the macro economy. The loosed epidemic control measures resulted in a relative slowdown in economic activities in the short term. In the long term, confidence will gradually recover with the economic recovery brought by the full resumption of work and production.
- We suggest landlords to focus on tenants' upgrading needs, provide green and smart management spaces to meet tenants' customized needs and seize the recovery opportunities.
- TMT, finance and professional services remained the main driver of demand. Demand in emerging industries such as energy technology industry also requires additional attention.