A new report from CBRE Group points to an unprecedented rise in the vacancy rates for office buildings in China’s leading cities.
According to the report as of the end of the third quarter the office building vacancy rate was at least 10% in all four of China’s first-tier cities of Shanghai, Guangzhou, Beijing and Shenzhen, while vacancy rates were even higher in second-tier cities.
The overall vacancy rate for high-quality office space in Beijing rose to 10.9% as of the end of the third quarter, for its highest level since the second quarter of 2011.
In Shanghai the vacancy rate for office buildings rose to 18.5%, for its highest level in nearly a decade.
Domestic analysts say that the chief reason for the increase in vacancy rates is an acceleration in the supply of office buildings, with supply now markedly exceeding demand in many areas.