2023 Guangzhou Office Occupier Survey

CBRE’s 2023 China Office Occupier Survey was conducted from March 22, 2023, to April 21, 2023. A total of 315 respondents participated in the survey, which asked corporate occupiers a range of questions covering issues such as future portfolio planning, workplace design and improvements, and Environmental, Social and Governance (ESG) goals. This report analyses the responses from the 66 Guangzhou-based respondents who participated in the survey.
 
Resumption of revenue growth to drive stronger expansionary intentions

• 78% of companies expect to see revenue growth in 2023, while 18% expect a return to pre-pandemic levels.
• 40% of respondents intend to increase their office footprint over the next three years, a slight improvement on the 33% who expanded their workspace over the past three years.
• 58% of companies plan to control real estate’s proportion of overall operating costs in the next three years. In addition to renewals, occupiers intend to monitor upgrading and expansion opportunities during the upcoming supply-peak.

Offices remain primary place of work; space efficiency lags national average

• Average office utilisation in Guangzhou is 64%, slightly lower than the nationwide average, but significantly higher than that in Europe and the U.S.
• 37% of foreign companies intend to continue to increase the number of shared workstations, while 30% of domestic firms plan to increase the quantity of dedicated seats.
• The main challenges affecting the implementation and adjustment of workplace strategies were identified as employee habits and space layout by 62% and 65% of respondents, respectively.

Strong potential for growth in demand for green buildings

• The main challenges affecting the implementation and adjustment of workplace strategies were identified as employee habits and space layout by 62% and 65% of respondents, respectively.
• 24% of companies are willing to pay a premium to help landlords upgrade properties and retrofit them with green features, with tenants' willingness to do so higher in Tianhe Sports Center and Yuexiu, where green building penetration is lower.
• Listed companies or unicorn companies are increasingly focusing on other ESG elements.

Core areas manage to retain tenants but emerging areas become more prominent

• Listed companies or unicorn companies are increasingly focusing on other ESG elements.
• Zhujiang New Town and Tianhe Sports Centre were identified by around 90% and 83% of CBD based respondents, respectively, as future office locations.
• Finance tenants displayed stronger demand for offices in areas with comprehensive retail facilities and an attractive environment, while TMT companies tended to prioritise areas with industry support and properties with specifications suited to their operations.