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Grade A office demands fall in Guangzhou

By Qiu Quanlin in Guangzhou (chinadaily.com.cn) Updated: 2016-01-07 17:27

The 2015 vacancy rate of 'Grade A' offices in Guangzhou, a major economic and trade hub along the Pearl River Delta, hit its lowest level in six years. According to an industrial report, the drop was caused by decreased supply and stable demand from businesses.

The report issued by Colliers International, one of leading international property service providers, indicates new supplies of 'Grade A' offices in Guangzhou decreased 6.6 percent year-on-year in 2015 to 267,599 square meters, of which more than 90 percent were located in Zhujiang New Town.

Following decreased supplies, vacancy rates of 'Grade A' offices fell to 15.7 percent, the lowest within the past six years. According to report, the average rent of 'Grade A' offices rebounded by 2.6 percent year-on-year to 155.4 yuan per sq m per month, after declining 0.7 percent in 2014.

Corporate tenants from the finance, trade, IT, professional services, and logistics sectors were the main source of demand for 'Grade A' offices in 2015.

"Demand for 'Grade A' offices in Guangzhou is expected to increase in the years ahead, following business expansion of the domestic finance, IT and service sectors," said Liang Jie, a senior analyst with Colliers International.

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