“In Q3/2024, the first new project of the year, Lanrun Ruichen Centre, brought nearly 30,000 sq m of new supply to the market. Leasing demand remained weak, but total surrender space declined significantly. In Q4/2024, approximately 100,000 sq m of new supply is expected in Tianfu New District, intensifying competition in the area.”

SOPHY PAN, SAVILLS RESEARCH



Total surrender space down significantly

• The first new office project of the year, Lanrun Ruichen Centre, was introduced to the market in Q3/2024.

• Grade A office market average rental rates decreased by 0.6% QoQ to RMB 98.6 psm pmth, while the city’s vacancy rate rose 0.3 ppts QoQ to 32.3%.

• Net absorption of Grade A office space turned positive to 11,000 sq m.

• IT and Retail & Trade sectors ranked as the top two sources of leasing transactions, accounting for 22% and 17% respectively.

• The leasing market is still dominated by demand for small-area tenants, with nearly 80% of leasing transactions having a turnover area of less than 500 sq m.

• Approximately 100,000 sq m of new grade A office space are expected to enter the Chengdu Grade A market in Q4/2024.