2021-06-14-莱坊-Guangzhou_office_market_report_Q2_2021_7页_1mb

Guangzhou Grade-A Office Market Report Q2 2021 Summary

1. Overall Market Performance

• The office relocating plans of most companies proceeded as scheduled and were not severely affected by the pandemic.
• Despite the overall economic recovery challenges (GDP growth 13.7% YoY), Guangzhou's Grade-A office market remained active with new leasing demand and stable or increasing vacancy rates.

2. Supply & Stock

• The total stock of Grade-A office reached 6.3 million sqm by Q2 2021.
• New Supply Source: The main new supply came from the delivery of the GMC Plaza, adding 35,000 sqm.

3. Rent, Vacancy Rates & Economic Drivers

• Average Rent: The overall average rent increased by 0.6% QoQ to RMB 171 per sqm/month.
• Vacancy Rates: The vacancy rate dropped to 7.5%, the lowest increase.
• Drivers: Shortened negotiation periods and higher rental expectations due to strong leasing performance. The government offered measures including rent/levy reductions to support businesses in affected areas.

4. Sub-Market Analysis

• Zhujiang New Town: Increased rental rates by 1%, average rent RMB 198/sqm/month. Lowest vacancy rate at 5.6%.
• Tianhe North: Stable vacancy rate at 10.3% YOY, average rent RMB 170/sqm/month.
• Yuexiu: Strong absorption, vacancy rate dropped to 9.3% (lowest decrease).
• Pazhou: Vacancy rate increased due to new supply, reaching 10.0%.

5. Demand & Major Tenants

• Active sectors: Professional services, TMT, Biomedical, and Emerging industries.
• Landlords are aggressively renewing leases/negotiating rent increases.
• Notable Transactions:
  • ByteDance completed a 30,000 sqm lease in Pazhou.
  • XPeng Motors acquired a 10,000 sqm space.
  • Record number of new leasing transactions took place.

6. Government Policies & Investment Outlook

• Government policies supporting businesses (rent reduction, tax relief) have helped stabilize the market.
• Economic recovery, supported by the city’s master plan and focus on strategic industries (auto, tech, bio), fuels office demand.

Key Statistics