Rents of top-grade office space in Beijing still on the rise
July 24, 2017 Category Real estate, Weekly
Rents for top-grade office spaces in Beijing’s key areas are still increasing, which could force prospective as well as existing tenants to look for cheaper alternatives in other areas, industry analysts said. According to Jones Lang Lasalle (JLL), popular locations in Beijing for Grade A office spaces include the Central Business District (CBD), Olympic Park, Wangjing and East Chang An Avenue. They have seen four new Grade A projects that added 2.7 million square meters to the capital’s office space supply in the second quarter, taking the total to 102 million sq m. Ping An Trust Co has bought a shopping mall in northeast Beijing for CNY1.25 billion in April. According to JLL, Ping An Trust may convert the mall into an office complex, potentially adding 1 million sq m more of gross floor area to the market. If more tenants relocate to suburban areas, such as the Olympic Park, high rents in the CBD may drop significantly, JLL said in a research note. “Some 78% of newly added offices have been rented out already in the second quarter,” said Zhang Ying, General Manager of JLL. Savills predicts that supplies will grow by 3.37 million sq m in the second half of this year. The boom in supply could well leave about 8% of the overall office space vacant. Although the emerging markets may drive down rents in prime locations, the average rent of top-grade office space in Beijing is expected to stay stable. Rents in Zhongguancun have increased by 13.8% year-on-year in the second quarter as the country pushes through the Made in China 2025 strategy, attracting more companies and research institutions to move in to the tech hub, the China Daily reports.
- KURT VANDEPUTTE (UMICORE) APPOINTED CHAIRMAN OF THE BOARD OF THE FLANDERS-CHINA CHAMBER OF COMMERCE (FCCC)
- Webinar: “Knowing Your Chinese Partner” – May 26, 2021, 10 am – 12 am
- EMA starts rolling review of CoronaVac, WHO approves Sinopharm vaccine for emergency use
- The Global Times warns not to politicize the Comprehensive Agreement on Investment (CAI)
- Hainan to become biggest duty-free market in the world