Beijing's Grade A office market records highest quarterly leasable net absorption figure for past decade; office, retail, and industrial vacancy rates recover to pre-Covid levels
According to JLL Beijing’s 4Q21 Property Market Review
Beijing: 6 January 2022 – “In 4Q21, as both quarterly and annual leasable net absorption figures for Beijing’s Grade A office market hit record highs for the past decade, market confidence saw a significant boost,” said Julien Zhang, Managing Director for JLL North China. “After demand recovery showed strong momentum throughout the year, investors looked increasingly favourably at Beijing’s commercial real estate market, encouraged by its positive fundamentals, particularly its high-quality assets and prospects for long-term growth.”
In the office market, strong market demand – dominated by the domestic TMT industry – drove a faster destocking pace, helping the overall market vacancy rate return to its pre-pandemic level at end-2019. Beijing’s investment market grew notably, with the total investment transaction volume for 2021 exceeding RMB 60 billion. Lerong Building and two data centres from Dr Peng Group were sold in 4Q21. In the retail market, F&B tenants continued to be the main driver of demand. Four new retail projects opened, including CP Centre in the CBD Core Area. The industrial market took the lead in positive rent growth. Meanwhile, both demand and supply in the luxury apartment market showed a strong upward trend, with the total sales volume reaching its highest quarterly level since 2014.
Grade A Office
|New Supply||263,000 sqm|
|Rental Growth||-0.1% q-o-q|