Shenzhen Office Market Whitepaper

The whitepaper titled "Shenzhen office market whitepaper: trends on a new horizon" published by JLL, reviews the urban development path of Shenzhen and the evolution of its industrial positioning within the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). It further provides an in-depth analysis of the development of its Grade A office market and the current supply-demand dynamics.

Along with the constant evolution of office demand, Shenzhen’s Grade A office projects exhibit greater diversities. Hence, we have categorised them into four groups by ownership type, building positioning and operation mode: leasable office property, headquarters office property, strata-titled office property and government-owned office property.

This whitepaper places special emphasis on the analysis of headquarters office properties. Under the circumstances of Shenzhen’s strong support for the development of headquarters economies, headquarters office properties have become an important source of supply in the city’s Grade A office market. Compared to other types, headquarters benefit from the support of corporate self-use and the leasing demand from their upstream and downstream enterprises to maintain a relatively lower vacancy rate. However, under the theme of budget optimisation, intensifying supply-side competition poses challenges to the sustainability of leasing performance for headquarters office properties.

In the face of short-term pressures in Shenzhen’s Grade A office market, enhancing overall asset management is crucial to all landlords. JLL recommends flexible adjustments to leasing strategies, active promotion of green transformation and focus on supporting services to create unique competitive advantages.

Composition of Shenzhen Grade A office stock