In the second quarter, the average occupancy rate of the office portfolio of CMC REIT was 82.1%
CMC REIT released its second-quarter operating data as of June 30, 2025, with an average occupancy rate of 82.1% for the office portfolio and an average occupancy rate of 85.3% for the properties. The leasing market is affected by oversupply, leading to high vacancy rates, and landlords are generally reducing rents in response. The occupancy rate of China Merchants Hanghua Science and Technology Center rebounded from 70% to 92.2%, while the occupancy rate of New Era Plaza dropped from 64.5% to 56.4%. The occupancy rate of Garden City Shopping Center increased from 95.9% to 97.9%. It is expected that the retail industry will enter a consolidation period in the first half of 2025, with intensified competition
According to the Zhitong Finance APP, CMC REIT (01503) released its operating data for the three months ending June 30, 2025. In the second quarter, the average occupancy rate of the office portfolio of CMC REIT was 82.1%, while the average occupancy rate of the properties was 85.3%.
In the second quarter, the overall operational performance of the properties remained stable compared to the first quarter. The leasing market continued to be affected by persistent oversupply, and the vacancy rate in the office market remained high. In the face of increasingly fierce leasing competition, property owners generally adopted strategies to lower rents. The CMC Hanghua Science and Technology Center successfully signed contracts with three major tenants by adjusting the rental price from RMB 224.7 per square meter to RMB 219.3 per square meter, a decrease of only 2.4%, resulting in an occupancy rate rebound from 70% to 92.2%, a significant increase of 22.1 percentage points. New Era Plaza saw its occupancy rate decline from 64.5% to 56.4% this quarter due to a large number of lease expirations. Currently, the rental price has been adjusted from RMB 150.2 per square meter to RMB 144.6 per square meter to improve the occupancy rate in the future.
The occupancy rates and current rents of the three Grade B office buildings in Shenzhen Wanggu (Technology Building, Technology Building Phase II, and Digital Harbor Building) were also affected by the overall downturn in Shenzhen's office market. Among them, the occupancy rate of the Digital Building decreased by 10.5 percentage points to 89.5%, and the rental price dropped from RMB 123.1 per square meter to RMB 120.9 per square meter. The occupancy rate of Technology Building Phase II also fell from 89.3% to 86.2%. Nevertheless, the operational performance of our Grade B office buildings continues to outperform the average level of the Shenzhen office leasing market.
On the other hand, the Garden City Shopping Center performed well, with its occupancy rate continuously rising from 95.9% to 97.9% this quarter. Various indicators, including foot traffic, active membership numbers, and total revenue, indicate that operational conditions have continued to improve this quarter. Looking ahead, the retail industry is expected to enter a consolidation period in the first half of 2025, with competition becoming increasingly fierce. To this end, we will adopt marketing strategies that align with the latest market trends to enhance competitiveness
