Tech and Consumer Services Underpin Improved Office Leasing Demand

Nationwide office net absorption across the 10 major Chinese cities tracked by CBRE increased by 34% y-o-y in Q1 2025, 12% higher than the average level of the corresponding period over the past five years. CBRE believes the strong start to the year provides firm evidence of a sustainable recovery in office leasing demand.  
 
Key Takeaways:

• Tech and consumer services underpinned improved office leasing demand in Q1 2025. Tech firms committed to 300,000 sq. m. of office space during the period, the highest volume in the past 12 quarters, while the volume of new leases signed by consumer services companies continued to rise after a recovery commenced in H2 2024.
• Tech-oriented cities along with tier I and II cities with stronger consumption power have been the main beneficiaries of the recovery in demand.
• Companies in or highly related to the new quality productivity and consumption industries are leading growth in recruitment, indicating that demand for office space will continue to rise in the coming months.