Vacancies in the office market in Shenzhen hit a decade-high in the first half of 2019, burdened by a flood of new space entering the market and lingering fallout from a recent cleanup in the financial technology sector, reports Caixin Global.
The vacancy rate for class-A space in the city now stands at 23.3%, according to Colliers International. Much of the new space is being built in Qianhai and the nearby Nanshan district. Qianhai’s vacancy rate is 65.7%. Which might explain our recent news item about Qianhai offering big rental subsidiesto Hong Kong companies registered there who have not yet settled in an office building.
It would appear that the demand side of the market is not doing so well, either. The government’s crackdown last year on peer-to-peer lending platforms apparently led to 300,000 square meters of temporary vacancies for grade-A office space in Nanshan alone. Colliers is positive, however, that the challenge will be short-lived, as banks and other financial organizations will step into the gap.