2024 China Office Occupier Survey

Executive Summary of 2024 China Office Occupier Survey

1. Office occupiers expect to see moderate growth in expansionary demand over the next three years.

• 38% of respondents plan to increase their office space over the next three years, a 4 pps. decrease from 2023, but slightly above the average of 35% seen over the past three years.
• Strategic emerging industrial sectors are coming to the fore, net expansionary demand is anticipated to surge among firms in the TMT, manufacturing, pharmaceutical and life science sectors over the next three years.

2. Cost remains at the forefront of occupier leasing strategy, with transportation, amenities, and location also crucial considerations

• 92% of respondents named cost containment and flexible lease terms as the main criteria they consider when deciding to renew or relocate.
• Other decisive factors influencing renewal vs relocation:  Amenities and services (71%),  Preferred location (60%), Sustainability goals (36%) and CapEx budgets (34%).
  
  

3. Occupiers intend to boost space efficiency and enhance employees’ wellness by re-formulating and optimising their workplaces

• 69% of respondents expect to rightsize different functions in their workplaces to optimise office utilisation, while 46% of respondents are considering decreasing office space with low utilisation.
• 57%of respondents said they plan to enhance employees’ experience while one-third of surveyed companies expect to create workplaces that drive high attendance and maintain employees’ wellness.
  
  

4. To strike a balance between long-term ESG goals and short-term cost-saving strategy, companies are seeking rental discounts for buildings without green certification.

• 31% of surveyed companies have established net-zero emission goals, with 70% targeting to achieve their objectives in 2030 or earlier.
• Around 1/5 of respondents are considering seeking rental discounts for buildings without green certification.