Shanghai Office Vacancies Hit New High

Given the office vacancy rate is indicative of an economy, Shanghai’s economy can be expected to get worse in the future, an economist suggests

People walk on a street in Lujiazui district in Shanghai on June 29, 2023. PEDRO PARDO/AFP via Getty Images

China’s economic gloom has spilled over into commercial building leasing in many megacities, with Shanghai’s office vacancy rate reaching a two-decade high.

According to CBRE, a real estate consulting firm, the vacancy rate for Grade A offices in Shanghai reached 20.9 percent, up 1.1 percentage points from the previous quarter and 2.8 percentage points from the same period a year earlier. This is the highest level in nearly 20 years.