Beijing Figures Q3 2023

Office

Six new projects were completed in ZGC, E2R, Olympic, and Wangjing in Q3 2023, bringing an end to a period of low supply. Strong pre-leasing in new stock pushed up new leasing volume on a q-o-q basis, with activity dominated by relocations. The rental decline accelerated across all submarkets.

Retail

Six new malls opened in non-prime areas this quarter, pushing up new supply to a record quarterly high. High occupancy in new stock ensured net take-up also set a new benchmark in Q3 2023. New malls completed this quarter mainly secured entertainment, culture, and family lifestyle retailers as tenants. Overall rents stayed flat although movement diverged across different submarkets.

Logistics

One new logistics facility came on stream in Daxing Airport fully occupied. Demand was driven by general 3PLs and those specialised in high-end retail and cold chain. Overall rental growth slowed and softened for recently completed facilities. Demand remained robust in Langfang and picked up in Tianjin.

Business Park

Two new industrial parks in BDA and another office-use property in Shangdi were completed this quarter. Absorption was driven by new stock but was negative in existing facilities. Leasing performance varied according to facility positioning. Rents declined, led by Greater ZGC. 

Investment

Commercial real estate investment strengthened over the quarter, with offices (including business parks) accounting for 80% of investment volume. Assets tied to the new economy also witnessed an uptick in investment in Q3 2023.