The demand for Grade A offices in Guangzhou, the capital of Guangdong province, will remain strong in 2018 as the local government continues to upgrade its industry structure, according to an industrial report.

According to a report issued by Cushman & Wakefield, a global leader in commercial real estate services, on Monday, the rental price of Grade A offices in Guangzhou will also keep rising this year, following the strong demand of commercial properties.

There will be about 642,000 square meters of newly supplied Grade A offices in Guangzhou in 2018, mainly located in the city’s downtown areas of Zhujiang New Town, Pazhou and the Financial Town, according to Su Jianting, head of Investment Advisory Services, Central China of Cushman & Wakefield.

“Businesses of TMT, professional service and finance have become strong forces behind the strong demand of high-end offices in Guangzhou,” said Su.

The vacancy rate of Grad A offices was down 6.3 percentage points year-on-year and the average rental price increased by 7.4 percent year-on-year to 181.3 yuan per square meter in Guangzhou in 2017, according to Su.