Continued pick-up in demand leads to steady vacancy rate decline
Insights & Recommendations:
In H1 2021, demand in the Beijing Business Parks (BP) market continued to pick up. The vacancy rate dropped for two quarters and rents remained stable. Some areas, such as Shangdi, have seen rental increases for two consecutive quarters. Internet technology companies were the main source of demand.
We expect a supply peak in 2021, which should effectively alleviate the supply shortage recently seen in some areas.
We recommend tenants to take advantage of supporting policies such as tax benefits and financial support in each business park area.
We recommend landlords to enrich supporting facilities in their properties and provide more value-added services such as organizing job fairs in the business park for tenants.