For institutional fund strategies, Future Sci-Tech City (Xixi) carries the strongest investor flag in Hangzhou, with prime yields around 5%.

  • Trophy submarket (Future Sci-Tech City (Xixi)) carries the strongest investor flag.
  • Prime yield: 5%.
  • Core funds buy income; value-add buys repositioning of secondary stock.
  • Cap-rate spread between trophy and secondary has widened post-2022.

Hangzhou office fund strategy and flag

For institutional fund strategies, Future Sci-Tech City (Xixi) carries the strongest investor flag in Hangzhou, with prime yields around 5%.

TL;DR

  • Trophy submarket (Future Sci-Tech City (Xixi)) carries the strongest investor flag.
  • Prime yield: 5%.
  • 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 Hangzhou, that's Future Sci-Tech City (Xixi) and assets like Alibaba Xixi Park, NetEase Park.

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

cityHangzhou
countryChina
regionAPAC
classARentLocal6.2 CNY/sqft/yr
classARentUsd$295/sqft/yr
vacancy18.4%
typicalLeaseYears5
typicalRentFreeMonths6
submarkets5
primeYieldPct5%
primeYield5%
trophyAnchorFuture Sci-Tech City (Xixi)

Frequently asked questions

Where do core funds buy in Hangzhou?
Trophy submarket — Future Sci-Tech City (Xixi) — 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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