Two new office projects providing a total GFA of 211,000 sq. m. came on stream in Lize in Q4 2020, bringing citywide new annual supply to 693,000 sq. m.. Net absorption continued to rise, reaching 142,000 sq. m., nearly double the 10-year quarterly average. New leases mainly involved expansions and relocations.
Leasing demand continued to recover this quarter, led by new energy vehicle manufacturers, franchised F&B and “new retail”. As expansionary demand, especially that from international brands, gradually rebounds, leasing activity will strengthen further in 2021.
No new supply was delivered for the third consecutive quarter, leaving annual new supply at just 80,000 sq. m.. E-commerce and 3PLs remained the two major drivers of demand, with pharmaceutical and cold chain occupiers also active.
Two new projects providing a total of 119,000 sq. m. GFA were delivered in Q4 2020, bringing the full-year figure to just over 1.0 million sq. m. a record high. A strong rebound in leasing activity in H2 2020 pushed up full-year net absorption to 355,000 sq. m..
Thirteen investment deals worth a combined total of RMB 14.84 billion were concluded in Q4 2020. Annual total investment volume achieved RMB 63.8 billion, the second highest since records began, narrowly falling below 2019’s total.