Beijing Figures Q4 2023

Office

Two new projects were delivered in Lize and Shijingshan in Q4 2023. Net take-up dropped q-o-q, with almost 60% of new leases signed this quarter involving units under 1,000 sq. m.. Over 60% of transaction volume was contributed by relocations. With vacancy reaching its highest level since Q4 2009, rents in both Grade A and B segments declined over the quarter.

Retail

One new shopping mall opened while one closed in secondary submarkets this quarter. Retailers accounted for 52% of leasing volume, closely followed by F&B. Vacancy declined q-o-q while average rents edged up q-o-q amid a rebound in foot traffic.

Logistics

One new project came on stream in Shunyi in Q4 2023. Comprehensive 3PLs displayed strong demand, with submarkets with high availability attracting the bulk of leasing activity. Vacancy rose q-o-q while average rents stayed flat.

Business Park

Four new projects came on stream, including two life sciences parks and two office buildings. Net absorption rose 49% q-o-q, most of which came from R&D projects. Z-park and Shangdi registered positive net absorption. While ICT and smart manufacturing displayed strong demand, rents fell q-o-q.

Investment

Four deals were recorded, all of which involved private corporations and capital. Two transactions were for branded hotels in core areas, which accounted for 80% of total investment volume. Property owners continued to adjust prices for various types of assets, pushing up cap rates q-o-q.