Q1 2023 T25 China Tech District Rental Index

KEY T25 RENTAL INDEX TRENDS IN Q1 2023

• CBRE’s T25 Tech District Rental Index declined by 0.4% q-o-q to 145.5 in Q1 2023.
• The vacancy rate rose to 18.6% and the rental index fell for a fourth consecutive quarter in Q1 2023. These movements were due to the withdrawal from several submarkets in Beijing by science and technology innovation centres and the completion of new projects in Caohejing in Shanghai and Future Science City in Hangzhou.
• Data service and software development companies replaced Internet platform services firms as the main source of demand in Q1 2023. Leading companies’ share leased area shrank further over the quarter.
• Relocation dominated new leasing transactions in science and technology innovation centres in Q1 2023. The proportion of deals involving new set up and upgrading remained stable, but expansion cases declined significantly. Most transactions this quarter involved small and medium sized spaces of under 5,000 sq. m.