Beijing Figures Q3 2024

Office

Leasing volume increased over the quarter as relocations continued to dominate. Net absorption surged by 160% q-o-q, with emerging areas accounting for 86% of the total. Premium Grade A buildings and core areas saw substantial downward rental adjustments.

Retail

New supply included Tongzhou MIXC ONE. Several high-end chained brands adjusted or closed stores for cost-reduction, but mass market retailers and F&B remained active. Projects adjusting their brand-mix or undergoing renovations were more flexible on rents.

Logistics

Transaction volume declined q-o-q. 3PLs accounted for 51% of total leasing volume. Average rental decline accelerated. Vacancy declined in the pan-Beijing area.

Business Park

One new manufacturing-focused life sciences park was completed. TMT firms continued to consolidate and surrender space, resulting in historic low net absorption, with only Z-Park and Shunyi recording positive absorption. The rental decline slowed.

Investment

The types of property traded this quarter were more diverse compared to previous months, with deals including a rare high-standard warehouse transaction. Overall leasing demand remained weak, leading to cap rate expansion across sectors.