Note: Data for 2025 as of November Source: JLL Research

Emerging industry companies still strongly prefer well-equipped business parks in core locations, particularly corporate villas, which offer spacious, flexible layouts, premium management, privacy, and an enhanced brand image akin to a headquarter. However, the pursuit of these premium assets is constrained by their limited supply and persistently low vacancy rates. Consequently, these companies are increasingly opting for  newly-built Grade A office buildings in emerging business districts adjacent to high-quality business parks, such as Pazhou and GZIFT. These buildings offer them a chance to move to a quality workspace from the old business parks while managing costs effectively. 

Figure 2: Distribution of emerging industries across office spaces in selected core areas of Guangzhou

Therefore, Grade A office buildings in these emerging districts are receiving large-scale office upgrade demand and relocations from small-to-medium-sized tenants from emerging industries. By the end of 2025, the average vacancy rates in the Pazhou and GZIFT submarkets declined by more than 6 and 13 percentage points, respectively, from their three-year highs. As the market strengthened, the rate of rental decline also slowed. The quarterly decrease in rent narrowed from nearly 5% to less than 2% in the fourth quarter of 2025.