BUSINESS Beijing's office market sees recovery as economy stabilizes

BUSINESS

Beijing's office market sees recovery as economy stabilizes

China Daily

18:24, September 28, 2022

A view of the Zhongguancun Software Park in Beijing. [Photo/VCG]

The capital's office market saw a recovery in the third quarter as the economy stabilized, according to a report from the international real estate service provider Colliers International.

The net absorption of Grade A office buildings in Beijing has recovered in the third quarter and the demand showed a significant improvement compared with the second quarter, the report showed. The vacancy rate of the whole market remains at 16.4 percent, and the net effective rent stood at 336.8 yuan ($46.8) per square meter per month.

Both the office building market and the industrial park market are currently affected by the shrinking demand of leading Internet enterprises. Traditional Internet industry clusters are also the most affected sub-markets, mainly in the northern markets, including office building markets in Wangjing, Zhongguancun, and industrial park markets in Shangdi.

"In the short term, cost reduction and efficiency is the main melody of the demand side. Therefore, Colliers International maintains a neutral market judgment, but still remains cautiously optimistic about the medium and long term market development," said Yan Quhai, Managing Director of Colliers International in North China.

Zhang Ying contributed to this story

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