Asia Pacific Office Outlook 2024

BEIJING

K E Y M E S S AG E S

SUPPLY

DEMAND

RENTS

KEY OUTLOOK

 Buffeted by economic uncertainty, net absorption continued to weaken in 2023. In the first three quarters of 2023, the overall market net absorption reached 170,771 sqm. Net absorption is forecast to be less than 300,000 sqm in 2023.  The market will remain tenant favorable for the next few years, and the domestic tenants will continue to lead the leasing market.  In the future, high-end manufacturing, green energy, the digital economy, and technology and finance will become the main sources for office demand in Beijing.

 From 2023 to 2026, the Beijing office market is expected to usher in about 1.37 million sqm of office space. Among this total, the future supply in the five core submarkets and suburban submarkets will future supply, respectively.  With the relaxation of the COVID-19 control measures, projects that were originally scheduled to open in 2022 and launch in 2023 are now scheduled to launch in 2024. New supply volume will gradually decrease in 2025 and 2026. account for 24.9% and 75.1% of the city’s total

 Rents have been under pressure in 2023. By Q3 2023, the overall market rental reached RMB 308 per sqm, down 7.0% y-o-y.  Many projects are expected to enter the market in 2023 and 2024. The new space and high vacancy will continue to exert pressure on landlords. Subsequently, market rent will still face some downward pressure.  With the steady recovery of the economy and the fall in office supply in 2025 and

 In September 2022, eight major departments in Beijing jointly issued ‘An Action Plan on the Reform and Open Development of Construction Green Finance’, which specifically highlighted the need to strengthen financial support for green buildings. With the realization of the net zero goal promoted by the government, and tenants’ growing awareness of green real estate, buildings with green certifications will be more favored by the market.

2026, positive rental growth may return.