Wuhan Office Q3/2021 (Savills)

• In Q3/2021, Wuhan’s Grade A office market witnessed no new supply, so the citywide Grade A office stock remained at 2.26 million sq m.
• Information technology, business services and consumer services saw active leasing demand in the quarter, respectively accounting for 26.3%, 16.0% and 15.1%, ranking the top three among all industries.
• Rent declines released upgrade and relocation demand, which took up 44.2% of the citywide total, while new set-ups were also in demand, accounting for 26.5%. The implementation of the “double reduction” policy for compulsory education has driven out many online education companies.
• The citywide Grade A office net take-up recorded 40,000 sq m, a 12.1% quarter-on-quarter (QoQ) decrease. By the end of the quarter, the average Grade A office vacancy rate declined 1.8 percentage points (ppts) to 35.1%.
• The citywide Grade A office average rent has fallen for seven consecutive months, but with a narrowing decline range. By the end of Q3/2021, the average rent for Grade A office fell to RMB102.2 per sq m per month, while the rent index fell 0.4% QoQ and 4.1% year-on-year (YoY).
• Wuhan’s Grade A office market is expected to introduce TF Building and Huaxia Bank Tower next quarter. Due to construction delays, several landmark Grade A buildings will postpone their delivery to 2022.

This article was originally published in https://en.savills.com.cn/