Market demand has continued to heat up since the third quarter, but 2020 net absorption was the lowest since 2015.
Due to the strong demand of technology companies, the vacancy rate of WangjingJiuxianqiao sub-market fell by 5.2 pps QOQ. Q4 2020’s net absorption was about 80% of the quarterly five-year historical average. Rents continued to decline, but the rate slowed. Q4 2020 rents fell by 8.4% YOY, the largest drop since 2010. Lufthansa submarket’s rent experienced the largest drop in Q4 2020, declining 11.8% YOY, in part due to the pressure of new projects in the southern CBD area and the downward adjustment of rents in the northern Wangjing-Jiuxianqiao area.
