Beijing Figures Q2 2024

Office

Expansion was limited as occupiers retained a cautious approach. CBD vacancy decreased over the quarter, with Wangjing experiencing the largest decline. Landlords of high-rent and older buildings provided more rental incentives.

Retail

Three new malls were launched this quarter, all in non-prime areas. Retailers and F&B groups targeting the mass market dominated short-term demand. Some malls that originally quoted higher rents displayed more rental flexibility.

Logistics

Three new projects were delivered in Pinggu and Daxing Airport in Q2 2024. Net take-up was negative for a second consecutive quarter while vacancy hit a historical high. Rents declined across all submarkets.

Business Park

Over 70% of new leases signed by TMT firms involved relocations. Life sciences demand slowed over the quarter. Landlords in Greater ZGC continued to aggressively cut rents. Rental growth in life sciences parks turned negative.

Investment

Insurance institutions remained active, completing the three largest deals this quarter. Corporate and private buyers turned more cautious and selective.