2025 China Office Market Outlook Mid-Year Review

Welcome to CBRE’s 2025 China Office Real Estate Market Outlook Mid-Year Review; a report in which we look back at the predictions we made at the beginning of the year and evaluate what we got right, and what we got wrong.

• Nationwide office demand improved in H1 2025, with net absorption for the period in line with CBRE’s forecast made at the beginning of the year. However, an influx of new stock compelled landlords to cut rents in the first six months of the year to secure tenants, leading to a larger-than-expected rental decline.
• TMT and consumption related industries displayed strong leasing demand. CBRE maintains its pre-existing net absorption forecast of 20% y-o-y growth for 2025.
• Landlords are expected to reduce rents further in H2 2025 to drive up occupancy. CBRE has revised down its full-year rental decline forecast to 9.9%.