Hangzhou court ruling blocks AI replacements and revives office market
Hangzhou's office scene is picking up again after a local court ruled in April 2026 that companies can't just swap employees for AI.
This decision helped protect jobs in a city hit hard by China's real estate slump, especially after the 2021 property bubble burst, leaving top-tier offices empty and giants like Alibaba laying off staff.
At one point, more than 40% of grade-A offices were empty in some inland cities and hit 30% in Hangzhou and Shenzhen.
AI firms cut vacancy to 20%
By March 2026, things started looking up: demand for high-end offices tripled as AI firms moved in, dropping vacancy rates to 20%.
Alibaba's shift toward AI, government rent subsidies for innovative firms, and new projects like Westlake 66 all helped.
The growth of these tech companies isn't just about machines; it's creating fresh demand for support staff and corporate services too.