BUSINESS

Guangzhou Premium Office Rents Suffer Steepest Drop in 15 Years

Published: Jan. 22, 2026 4:44 a.m. GMT+8

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Office buildings in the Pazhou CBD in Guangzhou, Guangdong province. Photo: VCG

Premium office rents in Guangzhou dropped 10.1% in 2025, logging their sharpest annual decline since 2010, as cost-cutting firms vacated prime locations in favor of lower-priced alternatives.

The vacancy rate in the southern manufacturing hub climbed to 21.2% by the end of the year, up 2.4 percentage points, according to data released Tuesday by CBRE Group Inc. Guangzhou’s slump reflects a broader retreat across China’s top-tier cities, where an influx of new supply is colliding with subdued corporate demand.

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Guangzhou’s premium office rents fell 10.1% in 2025, their steepest drop since 2010, with vacancy rates rising to 21.2%.
New high-end office supply surged 62.2% to 551,000 sqm, but net absorption dropped to 203,000 sqm, 22% below the five-year average.
Similar rent declines occurred in Beijing, Shanghai, and Shenzhen, as oversupply and weak demand pressured landlords nationwide.

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Who’s Who

CBRE Group Inc.: CBRE Group Inc. released data showing premium office rents in Guangzhou dropped 10.1% in 2025, the sharpest annual decline since 2010. Their data also indicated the vacancy rate in Guangzhou climbed to 21.2% by the end of 2025. Additionally, CBRE data revealed that relocations and upgrades constituted 39% of leasing activity in 2025, while expansion-led demand was only 18%.

Savills PLC: Savills PLC (第一太平戴维斯) provided an analysis indicating that Guangzhou's net absorption of premium office space in 2025 (203,000 square meters) was 22% below the city's five-year average. This data points to a challenging market with decreased demand.

Cushman & Wakefield: Cushman & Wakefield (库什曼和韦克菲尔德) is mentioned in the article as a source for real estate data. They reported that premium office rents in several major Chinese cities experienced significant drops in the fourth quarter of 2025. Specifically, rents in Beijing fell by 16%, Shanghai by 10%, and Shenzhen by 12%.

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What Happened When

2025：: Premium office rents in Guangzhou dropped 10.1%, marking the sharpest annual decline since 2010.

2025：: New supply of premium office space in Guangzhou surged 62.2% year-on-year to 551,000 square meters.

2025：: Net absorption of office space in Guangzhou fell to 203,000 square meters, 22% below the five-year average as of 2025 (per Savills).

2025：: Office rents in Pazhou averaged 107 yuan per square meter per month, about 30% below the 146 yuan average in Zhujiang New Town in 2025.

2025：: Landlords in legacy districts offered aggressive incentives; effective rents in Zhujiang New Town dropped nearly 20%.

2025：: Some tenants in Guangzhou broke leases early to relocate for better deals.

2025：: Relocations and upgrades made up 39% of leasing activity; expansion-led demand accounted for 18% (CBRE data).

As of 2025：: Firms in top Chinese cities prioritized cost containment over expansion.

By the end of 2025：: The vacancy rate in Guangzhou rose to 21.2%, up 2.4 percentage points.

Q4 2025：: Premium office rents in Beijing, Shanghai, and Shenzhen dropped 16%, 10%, and 12%, respectively, according to Cushman & Wakefield.

2026：: Millions of square meters of new office space are slated to enter the market, likely further increasing vacancies and sustaining downward rent pressure nationwide.