Key facts
- Developers delayed projects in response to weak market conditions.
- Lower rents encouraged businesses to move into premium offices.
Shenzhen's Grade A office vacancy rate declined for the second consecutive quarter, a trend attributed to developers delaying new projects in a weak market, which sharply reduced new supply. Analysts noted that this decrease reflects developers' strategic response to sluggish corporate demand rather than a sign of a broad recovery in leasing. The lower rental rates have also incentivized businesses to relocate from lower-tier buildings to premium office spaces.