Beijing

The controversy over the effectiveness of mandatory Electronic Logging Devices (ELD) rages on, but despite the outcry, the law requiring that many commercial trucks be outfitted with an ELD remains firmly in place.

Touring seemingly endless lists of properties searching for the right fit for a new corporate headquarters will soon be a relic of the past. Virtual and augmented reality technology is closing in on a tipping point that will bring it into every executive suite and commercial real estate office - replacing in-person tours with virtual experiences.

Q3 2019 Market Report, Bejing

Although Q1 is the traditional off season, the increasingly active market led to the completion of several significant leasing transactions. The net absorption of this quarter outnumbered the total amount of that of 2020. Thus, despite the launch of two new buildings, the vacancy rate of Beijing Grade A office market was pulled down by the rapidly recovering demand. Considering the intense competition and the upcoming supply peak, some landlords under pressure further lowered rents in Q1, resulting in the decline of the city’s average rent.

In Q4 2020, Beijing Grade A office market became increasingly active. Along with the completion of several significant leasing transactions contributed by some large companies in the technology and finance sectors, the Grade A office market saw net absorption going up QOQ. Despite this, the vacancy rate was pushed up by heavy new supply, and the rental decline continued.

In Q3, certain demand suppressed in H1 was released. However, as two new buildings entered the market with a total GFA of 190,000 sqm, the city’s vacancy rate was pushed up to 19.1%. Due to the increasing vacancy rate and tenants’ tight budget, several landlords without healthy tenant mix or under leasing pressure kept lowering rents and being flexible in rental negotiations, the Grade A office market thus saw rental decline in Q3.

In Q2 2020, as the COVID-19 pandemic has been relatively well controlled in Beijing, tenants became increasingly active compared to Q1. However, due to the city’s high vacancy rate, tenants’ tight budget control, and the upcoming supply peak, many landlords kept lowering rents and being flexible in negotiations.

Q1 2020 Market Report, Bejing