Q3 2022 T25 China Tech District Rental Index

KEY T25 RENTAL INDEX TRENDS IN Q3 2022

• CBRE’s T25 Tech District Rental Index declined by 0.9% q-o-q to 145.5 in Q3 2022. This brought the y-t-d fall to 1.2%, a similar level to the y-t-d decline in CBRE’s Nationwide Office Rental Index.
• Eighteen of the 25 tech districts tracked by CBRE registered a q-o-q rental decline this quarter, the same number as in Q2 2022.
• With demand continuing to lose momentum, overall vacancy increased for a third consecutive quarter, rising 1.1 pp q-o-q to 17.6%. Some 17 tech districts recorded higher vacancy as the tech industry continued to consolidate. However, the number of lease terminations declined.
• Net absorption in the 25 tech districts tracked by CBRE returned to positive territory in Q3 2022, registering 27,000 sq. m. The net absorption rate for tech districts fell to 0.1%, lagging the nationwide office net absorption rate by 0.5 pp.