Beijing Office 1H/2019

The overall performance of Beijing’s office market remained largely stable in 2018. Despite a slowdown in the domestic economy, the office market maintained an upward trend, underpinned by Beijing’s strong economic fundamentals as well as steady demand.

A total of 520,037 sq m of new supply was launched during the year, increasing total Grade A office stock by 2.6% year-on-year (YoY) to 11.02 million sq m by the end of 2018.

Information technology, finance and professional services companies were the top three demand drivers for office space, collectively accounting for 69% of total leased area in 2018. Meanwhile, annual net absorption outstripped annual supply, reaching 541,327 sq m, and consequently the city-wide vacancy rate contracted by 0.5 of a percentage point (ppt) YoY to 7.0% by the end of 2018.