Core Viewpoint - The article highlights the current state of the office rental market in Shenzhen, particularly focusing on the rise of short-term office rentals due to economic challenges and high vacancy rates in premium office spaces [3][4][10]. Group 1: Office Rental Market Dynamics - The average daily rental price for short-term office spaces is approximately 5 to 5.5 yuan per square meter, making it affordable for businesses [4][6]. - The vacancy rate for Grade A office buildings in Shenzhen reached 29.8% in the first quarter of 2025, an increase of 0.7 percentage points from the previous quarter [4][10]. - The total stock of Grade A office space in Shenzhen grew to 11.586 million square meters, with a net absorption rate of 67,000 square meters, reflecting a 33.1% decrease compared to the previous quarter [10]. Group 2: Impact of Economic Conditions - Many landlords are struggling to find long-term tenants, leading to the emergence of short-term rental options as a way to mitigate losses during vacancy periods [3][8]. - Some landlords are facing financial difficulties, resulting in properties entering foreclosure, which further complicates the rental landscape [12][14]. - The shared office market has shrunk significantly, with a decline of over 60% from its peak, indicating broader challenges within the industry [15]. Group 3: Business Adaptations - Companies operating as "sub-landlords" are adapting by renovating and subdividing larger office spaces into smaller units for short-term rentals [7][18]. - The article mentions a specific case of a company that transitioned from a real estate advertising business to a sub-leasing model due to declining demand in its original market [18]. - Some businesses are leveraging flexible rental options, such as half-day rentals, to attract clients looking for private meeting spaces [17][18].

Group 1 - The article discusses the trend of short-term office rentals in Shenzhen, particularly in the CBD area, where prices can be as low as 5 yuan per square meter per day [4][7][24] - Many of these short-term rentals are operated by "second landlords" who are subleasing office spaces due to various reasons, including seeking to minimize losses during vacancy periods or transitioning from other business models [3][10][11] - The overall vacancy rate for Grade A office buildings in Shenzhen reached 29.8% in the first quarter of 2025, indicating a challenging rental market [4][16] Group 2 - The article highlights that the net absorption of office space in Shenzhen decreased by 33.1% quarter-on-quarter, with a total of 67,000 square meters leased in the first quarter of 2025 [16] - The shared office market has seen a significant decline, with the industry shrinking over 60% from its peak, and notable companies like WeWork filing for bankruptcy [26] - The article mentions that some second landlords are unable to renew leases due to properties entering foreclosure, further complicating the rental landscape [18][20]