For institutional fund strategies, Tianfu New Area carries the strongest investor flag in Chengdu, with prime yields around 5.6%.

  • Trophy submarket (Tianfu New Area) carries the strongest investor flag.
  • Prime yield: 5.6%.
  • Core funds buy income; value-add buys repositioning of secondary stock.
  • Cap-rate spread between trophy and secondary has widened post-2022.

Chengdu office fund strategy and flag

For institutional fund strategies, Tianfu New Area carries the strongest investor flag in Chengdu, with prime yields around 5.6%.

TL;DR

  • Trophy submarket (Tianfu New Area) carries the strongest investor flag.
  • Prime yield: 5.6%.
  • Core funds buy income; value-add buys repositioning of secondary stock.
  • Cap-rate spread between trophy and secondary has widened post-2022.

Where core funds buy

Core capital concentrates in trophy stock with long-WAULT income. In Chengdu, that's Tianfu New Area and assets like Tianfu Software Park, IFS Chengdu.

Where value-add looks

Value-add capital looks at secondary Class A and convertible Class B with repositioning angle. The trophy/secondary cap-rate spread has widened post-2022, which has reopened the value-add basis for repositioning plays.

Key facts

cityChengdu
countryChina
regionAPAC
classARentLocal4.8 CNY/sqft/yr
classARentUsd$228/sqft/yr
vacancy22.6%
typicalLeaseYears5
typicalRentFreeMonths8
submarkets5
primeYieldPct5.6%
primeYield5.6%
trophyAnchorTianfu New Area

Frequently asked questions

Where do core funds buy in Chengdu?
Trophy submarket — Tianfu New Area — and the most defensible long-WAULT assets within it.

Editorial provenance

Reviewed by Class A Atlas Editorial Desk — House byline · global editorial team. Last updated 2026-04-15. See our methodology and editorial standards.

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