During the past year the Grade A office market in Greater China has been subjected to both macro uncertainty, which has clouded the business outlook for many occupiers, as well as excessive supply in several cities. On the back of this, vacancy has risen and as it has done so, so the opportunities for occupiers to lease space on favorable terms in the region has increased as well.
In the coming years, the Grade A office market in a number of Greater China cities is expected to see a surge of supply. On the demand side, we do see some macro positives beginning to work themselves into the market to help drive office space demand.
These include mainland China’s economic shift to higher value-add industries, the partial trade deal reached by China and the U.S., and the implementation of large-scale regional development plans, such as the Yangtze River Delta (YRD) integration plan and the Greater Bay Area (GBA) development plan.
