Zhang Yu

JeniZhang13@163.com

AS the economic structure undergoes upgrading and emerging industries experience a swift ascent, Shenzhen’s Grade A office market exhibited more positive signals in the latter half of last year, with notable developments across various sectors, according to a report released by real estate services provider Jones Lang LaSalle (JLL) on Tuesday.

Shenzhen’s office building market is still experiencing a surge in demand for cost-effective relocation solutions, with enterprise headquarters driving the trend.

In 2024, Shenzhen’s Grade A office market saw a net absorption of about 880,000 square meters, on par with the average annual net absorption over the past five years.

Enterprise headquarters’ self-use office demand accounted for nearly 60% of the annual net market absorption, underscoring their pivotal role in supporting the city’s office market, according to JLL.

The internet industry, propelled by the growth of AI and big data, remains a cornerstone of Shenzhen’s office market, accounting for nearly 40% of leased space in 2024. Finance and professional services continue to be significant demand drivers.

Alfred Li, head of office leasing advisory for JLL’s West China and South China business operations, highlighted the positive momentum in the second half of 2024. With the Guangdong-Hong Kong-Macao Greater Bay Area’s supply chain advantages, cross-border e-commerce platforms have mostly set up seller service centers in Qianhai, driving the growth of related supporting office demand.

Meanwhile, overseas brands have also increased their presence in manufacturing, online marketing, and brand creativity, further stoking the need for high-quality office space. The new retail industry’s reliance on R&D and online marketing also prompted firms to seek out premium office buildings to facilitate business innovation.

Looking ahead to 2025, Silvia Zeng, JLL’s head of research for South China, anticipates that industries such as AI, big data, cross-border e-commerce, and new retail will attract more companies to Shenzhen, increasing the demand for Grade A offices.