After the outbreak of the epidemic, the vacancy rate of office rental in many cities in China was too high, the activity of the office market declined, and the demand dropped significantly. Insiders believe that the office market has transitioned from the golden period to the silver period. No matter whether the vacancy rate of office buildings rises or not, the imbalance between supply and demand in the market has formed. Now let's talk about the reasons for the high vacancy rate of office buildings.

The reasons for the high vacancy rate of office.

The first reason for the vacancy rate of office leasing is supply, that is, when new office buildings enter the market, the oversupply is also caused by the comparison of insufficient demand. Due to economic difficulties, some market entities will indeed disappear, for example, small and medium-sized enterprises will disappear due to the epidemic; However, the demand for office buildings has disappeared passively, and funds have gone to places other than office buildings.

The second reason for the vacancy rate of office leasing is the residential market. The popularity of investment housing has also had an impact on the office market. After all, many people believe that house prices will not fall, but office rents are not necessarily. Many people are far less interested in investing in office buildings than in housing. People even put their savings and industrial funds of three generations into one house after another.

The third reason for the high vacancy rate of office leasing is the decrease in demand. Office vacancy rates have been rising since 2019. The reduction in rental demand directly leads to a large number of vacant houses. In addition, many office buildings will enter the market, and the vacancy rate of office leasing will only be increasing.

In addition, joint office and remote office will also bring some pressure to the traditional office rental market. If demand is not active, the phenomenon of supply exceeding demand will always exist.

How to solve the problem of office building control?

In order to solve the problem of excessive control of office buildings, it is necessary to balance supply and demand. In the economic downturn, the number of office buildings entering the market will certainly decrease. On this basis, the owner needs to provide more convenient conditions for renting the house. At the same time of reducing the rental price of the office building, the rent free period can be extended, more flexible rental options can be provided, and the configuration of green health equipment in the office building can be increased. Only from the perspective of tenants, providing more convenience for tenants can solve the problem of high vacancy rate.

The above are the main reasons for the high vacancy rate of office leasing. In the final analysis, the high vacancy rate in the office rental market is an inevitable situation where supply exceeds demand. In order to promote the survival of the market, in addition to economic recovery, owners also need to provide more favorable lease conditions.