China’s Office Market Slumps as Vacancies Surge, Demand Fades

Vacancy rates exceed 20 percent in many cities, with landlords cutting rents and offering incentives as demand weakens.

Construction of the city metro flanked by high-rise buildings in Shenzhen, China's southern Guangdong province, on July 20, 2022. Jade GAO/AFP

China’s office market is under mounting strain, as vacancy rates in major cities climb to multi-year highs and rents continue to fall, offering a stark window into broader economic weakness.

Across the country’s top commercial hubs, office vacancies have exceeded 20 percent in major cities such as Beijing and Shanghai, while Chinese online news platform NetEase reported April 28 that office vacancies were close to 30 percent in some of Shenzhen’s commercial districts.