China Figures Q1 2026

OFFICE

Net absorption increased by 7% q-o-q to 520,000 sq. m. in Q1 2026. Leasing volume involving new set up and expansion grew 24% y-o-y, reflecting improved demand momentum. New supply declined by 32% q-o-q but rose 11% y-o-y to 830,000 sq. m.. Average vacancy edged up by 0.3 percentage points q-o-q to 25%, while rents dropped by 1.9% q-o-q.

RETAIL

Seasonal factors contributed to a pronounced slowdown in supply and demand this quarter, with new supply and net absorption in major cities declining by 80% q-o-q to 230,000 sq. m. and 160,000 sq. m. respectively. Average vacancy was stable at 7.5%. Landlords continued to offer preferential terms to secure tenants, pulling down average rents by 0.5% q-o-q.

LOGISTICS

Nationwide logistics net absorption totalled 1.25 million sq. m. in Q1 2026, a decline of 59% q-o-q and 49% y-o-y, owing to a rise in short-term lease terminations and ongoing cross-border e-commerce consolidation. New supply totaled 2.57 million sq. m.. Vacancy rose by 0.8 percentage points q-o-q to 19.4%. Average asking rents fell 2% q-o-q to RMB 26.6 per sq. m.

INVESTMENT

72 transactions totaling RMB 45.8 billion were recorded this quarter, marking a decline of over 35% y-o-y and q-o-q. However, market sentiment and value discovery strengthened as institutional activity achieved a recent peak. Investment appetite for retail properties remained robust, while core-city offices continued to be keenly sought after.