Chinese Tech Giants Cut Back on Office Space in Shenzhen

The demand for office space in tech hub Shenzhen’s top commercial properties remained depressed in the second quarter of this year, as some Chinese internet giants scaled back their operations amid a strict regulatory environment and repeated Covid-19 outbreaks.

The vacancy rate of the southern city’s Grade-A offices climbed up to 21.3% at the end of June, up 0.7 percentage points from a quarter earlier and 0.8 percentage points from the end of December, according to a report released Wednesday by real estate services company Jones Lang LaSalle Inc. (JLL).