More Shenzhen Office Space Goes Begging for Tenants

What’s new: Prime office buildings in southern China’s tech hub Shenzhen are losing luster for investors as the vacancy rate rose to a record 24.5% amid a weak business environment.

During the first half, investment institutions accounted for 14% of office building transactions in Shenzhen, down from 19% at the end of 2022, according to real estate service firm Cushman & Wakefield. It marks a sharp drop for investment companies’ share of the city’s office building deals since before the pandemic, when the sector accounted for 30%–40%.