Beijing Figures Q4 2024

Office

Two new projects in ZGC and Lize came on stream in Q4 2024. While the number of new leases fell from the previous quarter, the volume of relocation deals increased. Rents fell by 3.4%, with declines in the Premium A segment most significant.

Retail

Two decentralised new malls and two renovated properties in secondary areas were completed this quarter. Retailers catering to optional consumption experienced stronger headwinds. Rents declined in both prime and non-prime areas.

Logistics

Numerous deals were signed involving tenants moving to facilities with similar locations and quality but with lower rental costs. Rental cuts in high-quality projects in Daxing Jingnan, Majuqiao and Tongzhou succeeded in attracting tenants this quarter.

Business Park

–Quarterly net absorption turned positive in Q4 2024, with over 70% of new leases from TMT firms. The trend for industrial clustering in key submarkets strengthened. The rental decline accelerated in all submarkets, led by Greater ZGC.

Investment

Owner-occupiers accounted for 60% of quarterly transaction volume while institutions accounted for over half the full year total. Cap rates continued to rise.