China Office Vacancies Reach Decade High on Slowing Economy
(Bloomberg) — China’s deepening economic slowdown and a glut of supply has pushed the nation’s office vacancy rate to the highest since at least 2008.
The vacancy rate in 17 major cities climbed to 21.5% in the third quarter, according to CBRE Group Inc. The “spike” in vacancies this year is the worst since the depths of the global financial crisis a decade ago, said Sam Xie, the firm’s head of research in China.
China’s office market is being buffeted by a confluence of forces, driving vacancy rates to the highest among global business centers. Overseas companies are waiting for an end to hostilities in the U.S. trade war before committing to new leases; skyscrapers built during the boom years are unleashing a wave of supply; and cost-conscious tenants are moving to cheaper buildings as the economy slows.
In Lujiazui on the banks of Shanghai’s Pudong River — one of Asia’s most expensive business districts — vacancy rates reached 16% last quarter, up from about 3% three years earlier, CBRE said.
Among the departures was Mitsubishi UFJ Financial Group Inc., which moved to the New Bund Time Square building in the emerging business zone of Qiantan, where rents are about 50% cheaper than Lujiazui.
In an effort to attract tenants, landlords are offering incentives including longer rent-free periods. Even so, rents declined in 14 of the 17 cities last quarter, including the major hubs of Beijing and Shanghai, CBRE’s Xie said.
In Shenzhen, authorities have offered rent discounts of as much as 50% to attract tenants to Qianhai, an emerging business zone. Nine years after it was established as a future financial-services hub, two-thirds of office space in the area is empty, according to Colliers International Group Inc.
Contact editor Yang Ge (firstname.lastname@example.org)
Mar 31 18:19
Mar 31 17:11
Mar 31 13:09
Mar 31 12:54
Mar 31 09:32
Mar 30 17:37
Mar 30 15:43
Mar 30 12:54
Mar 30 10:06
Mar 27 18:54
Mar 27 18:41
Mar 27 10:56
Mar 26 16:01
- 1In Virus-Ravaged Wuhan, Hours-Long Queues to Collect the Ashes of the Dead
- 2Wuhan Reports First New Covid-19 Case in Five Days
- 3China Meat Markets Offer Preview for Rest of World, Cargill Says
- 4Gallery: Bereaved Families of Wuhan Finally Allowed to Collect Their Loved Ones’ Remains
- 5Coronavirus Live Updates (Thursday): G-20 Commits to $5 Trillion Injection; U.S. Jobless Claims Hit Record; Global Caseload Tops 500,000
- 1Power To The People: Pintec Serves A Booming Consumer Class
- 2Largest hotel group in Europe accepts UnionPay
- 3UnionPay mobile QuickPass debuts in Hong Kong
- 4UnionPay International launches premium catering privilege U Dining Collection
- 5UnionPay International’s U Plan has covered over 1600 stores overseas