ASIA PACIFIC OUTLOOK 2025

BEIJING

KEY MESSAGES

Supply

Demand

Rents

Key Outlook

Compared with other first - tier cities, Beijing’s future supply is limited, with a supply-to-stock ratio of only 13%.

Beijing’s office market will continue to face headwinds, with net absorption expected to be at around 300,000 sq m in 2025.

Rents have been under pressure in 2024. By Q3 2024, the overall market rentallevel reached RMB266.11 per sq m, down 13.5% y-o-y.

From 2025 to 2029, the Beijing office market is expected to welcome approximately 1.54 million sq m of new office space. Of this total, the future supply in the five core submarkets and suburban submarkets will account for 42.2% and 57.8% of the city’s total future supply, respectively.

Companies in the digital economy, the telecoms sector, the healthcare services sector and the financial services sector are set to be the main sources for office leasing demand in the city. The downward trend in rents is expected to continue. We expect that many tenants will look to upgrade from Grade B office space to Grade A office space during 2025.

New project entries into the market will continue to drive up the overall vacancy rate. As a result, the vacancy rate is expected to peak at around 20% in 2027.

Cost control will remain the chief tenant leasing strategy. In 2025, overall rental levels may continue to face a downward trend.

Approximately 270,000 sq m of new office supply is slated to enter Beijing's Grade A office market in 2025.

With an expected stronger economic environment and corporate performance, the citywide average rental levels are expected to stabilize in 2026.

The market will remain tenant - favourable for the next few years, with domestic firms continuing to lead the leasing market.

The market will see peak new supply completing in both 2026 and 2027.

Cushman & Wakefield

ASIA PACIFIC OUTLOOK 2025