Tianjin Office Q2/2024

“In Q2/2024, benchmark office buildings in the Tianjin Grade A office market had significantly better performance than the overall market thanks to adjusted leasing strategies. Meanwhile,the overall office vacancy rate increased and is expected to continue the upward trend with the abundant supply, weighing on the rents.”

VINCENT LI, SAVILLS RESEARCH  


Escalating competition led to differentiated submarket performance.

• In Q2/2024, no new projects entered the Grade A office market in Tianjin. The total stock stood at 1.72 million sqm by the end of this quarter.

• Grade A office market recorded negative absorption in Q2/2024, with significant tenant adjustments in non-prime submarkets.

• Leasing demand from technology and education companies was the major drivers in the quarter.

• Overall Grade A office market vacancy rate grew 0.5 percentage points (ppts) quarter-on-quarter (QoQ) to 34.5%, down 0.4 ppts year-on-year (YoY).

• Citywide rents fell to an average of RMB103.8 psm pmth, down 4.3% QoQ and 3.7% YoY.

• In H2/2024, the Tianjin Grade A office market will see launches of several new projects, which will provide more options but lead to an increase in market vacancies.