Tianjin Office Q3/2024

“The current Grade A office supply in Tianjin has slowed, and landlords seized the current market window to accelerate the absorption, adapting their leasing strategies. Tenant demand and market competition remain uncertain in the near future. The future direction of policy and shifts in demand from key industries need to be closely monitored.”

VINCENT LI, SAVILLS RESEARCH



Landlords adjust leasing strategies to accelerate absorption

• In Q3/2024, no new projects entered the Grade A office market in Tianjin. The total stock stood at 1.72 million sqm by the end of this quarter.

• Net absorption totalled 5,700 sqm in Q3/2024. Haihe Riverside Area was the most active submarket this quarter.

• Leasing demand from the financial sector was particularly strong in Q3/2024, with notable demand also coming from the education and logistics industries, which provided significant support to the office leasing market.

• The overall citywide Grade A office market vacancy rate fell 0.3 percentage points (ppts) quarter-on-quarter (QoQ) to 34.2%, down 0.5 ppts year-on-year (YoY).

• Citywide rents fell 0.3% QoQ at RMB 103.0 psm pmth, with rental index down 0.7% QoQ and 4.9% YoY. The Xiaobailou district, where competition is particularly fierce, saw the largest quarter-on-quarter rental index decline of 4.4%.

• In Q4/2024, the Tianjin Grade A office market is expected to see one new project, which will bring more options for tenants but also intensify market competition.