2026-07-29-莱坊-Shenzhen_office_market_report_Q2_2026_7页_2mb

Shenzhen Grade-A Office Market Report Summary (Q2 2026)

Core Content

This report provides an in-depth analysis of the Grade-A office market in Shenzhen during Q2 2026, focusing on supply and demand dynamics, rental trends, vacancy rates, and the investment landscape.

Key Market Trends

1. Take-up and Vacancy

• Take-up Recovery: The market continued its Q1 recovery into Q2, albeit at a slower pace.
• Net Absorption: Net absorption reached 102,492 sqm, still exceeding new supply.
• Vacancy Rate: The citywide vacancy rate dropped by 0.6 percentage points to 22.7%, marking the second consecutive quarter of improvement.
• Submarket Gaps: Vacancy rates are increasingly split across submarkets, with some areas experiencing higher vacancy than others.

2. Rent Trends

• Rental Correction: Citywide average effective rents fell 1.5% QoQ to RMB139.7 sqm/mth, a smaller decline than Q1's 2.6%.
• Submarket Performance:
  • Houhai: -3.2% QoQ rent decline
  • Bao'an CBD: -3.0% QoQ rent decline
  • Shenzhen High-tech Park: -2.5% QoQ rent decline
  • Futian CBD: -0.5% QoQ rent decline
  • Shekou: Flat
  • Qianhai: -0.8% QoQ rent decline
• Core vs. Decentralised: Core CBDs like Futian and Shekou showed better resilience compared to emerging submarkets.

3. Supply and Demand

• Supply: New supply eased to 40,000 sqm in Q2, with developers delaying completions to avoid competition.
• Demand Drivers:
  • Relocations: Accounted for 65.4% of leasing activity.
  • Renewals: Represented nearly one-fifth of leasing activity.
  • New Set-ups: Eased from Q1's peak, with demand now focused on upgrading building quality and location.
• Sectoral Demand:
  • TMT (Technology, Media, and Telecommunications): Dominated with 52.0% of leased area, driven by smart logistics, AI, and telecoms digitalisation.
  • Professional Services: Followed with 35% share, led by law firms and management consultancies.
  • Finance: Private equity and insurtech saw selective leasing activity.

4. Investment Market

• Subdued Activity: No headline Grade A en-bloc transactions were disclosed in Q2.
• Capital Preferences: Investors gravitated towards assets with stable cash flow, pricing cushion, or repositioning potential.
• Industrial Assets: Outperformed traditional office assets, accounting for 50% of total transaction value in H1 2026.
• Investor Strategy: A shift from capital appreciation to focus on operating income and exit strategies is evident.

Outlook for 2H 2026

• Supply-Demand Pressures: The substantial 2026 pipeline may resurface in the second half, leading to a temporary increase in vacancy.
• Rental Adjustments: Moderate rental declines are expected, with the most pronounced adjustments in Houhai and Bao'an CBD.
• Demand Drivers: Technology, professional services, and finance-related businesses will continue to be the main demand drivers, but corporate expansion remains muted.
• Net Absorption: Normalisation is expected rather than a repeat of Q1's elevated performance.

Summary of Key Points

• The market is in a correction phase, with rents still declining.
• Supply has slowed, and developers are delaying launches to avoid direct competition.
• Relocations dominate leasing activity, indicating tenant focus on cost control and quality upgrades.
• TMT and professional services are the leading sectors in demand.
• Investment activity remains limited due to soft rents and low yields, with a preference for industrial and repositionable assets.
• The market is expected to follow a similar pattern in 2H 2026, with continued focus on cost efficiency and submarket-specific strategies.

Tables Summary

Table 1: Major Shenzhen Grade-A Office Sub-Market Indicators (Q2 2026)

Table 2: Major Shenzhen Grade-A Office Leasing Transactions (Q2 2026)

Contact Information

• Regina Yang: Director, Head of Research & Consultancy, Shanghai & Beijing
  Email: regina.yang@cn.knightfrank.com
  Phone: +86 139 1872 3123

• Henry Chen: Analyst, Research & Consultancy, Shenzhen
  Email: henry.chen@cn.knightfrank.com
  Phone: +86 136 4231 4481

• Ken Kan: Managing Director, Shenzhen
  Email: ken.kan@cn.knightfrank.com
  Phone: +86 186 6682 5418

Notes

• Some data may differ due to database adjustments.
• All images are for illustration only.
• The report is for general information only and is subject to change without notice.