Covid Concerns Leave More Shenzhen Office Space Empty

What’s new: More office space is going vacant in South China tech hub Shenzhen, industry data show, with analysts pointing to declining demand from small and midsize firms worried about the impact of country’s new wave of Covid-19 outbreaks.

By the end of March, about 77.8% of Class A office space in Shenzhen was leased, a decline of 2.9 percentage points from the end of last year, according to data from Cushman & Wakefield, a real estate services firm. Net leasing of Class A office buildings — new leases minus expiring leases, as measured by floor space — was down 28.5% year-on-year.