"Rents and occupancy rates will be under continuous pressure," says Soho China, a Hong Kong-listed owner of office buildings in Beijing and Shanghai. (Nikkei montage/Source photo by Getty Images)

China's property downturn spreads to trophy office buildings

Vacancies rise at top Beijing and Shanghai towers as tenants seek lower rents

ECHO WONG, CK TAN and PEGGY YE, Nikkei staff writers

August 21, 2023 06:00 JST

HONG KONG/SHANGHAI -- Vacancies are rising in China's most exclusive office buildings as businesses look to reduce rental expenses during the country's disappointing economic recovery.

While the cost-cutting by companies represent a sensible response to tougher times, it threatens to make things worse in China just as growing fears about the property sector have prompted global banks to scale back their forecasts for growth in Asia's largest economy.