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Beijing | 2022 H1 | Business Park: Rents decline as demand slows

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20210812 BJ BP H1 15351040_EN

In H1 2022, demand in Beijing business parks declined.

Dear Valued Client,

  • In H1 2022, demand in Beijing business parks declined. With IT industry regulations tightening,
    leading companies are reassessing their strategies, causing some companies to cancel their
    current leases and surrender the space to the landlord. The market has also been affected by
    Covid, reducing leasing activity. There was a subtle increase in vacancy in H1, up 1.0 pps HOH.
    Meanwhile, rents have been dropping for two quarters, at the rate of 1.8% HOH, to RMB129.3
    (US$19.2) per sq meter.
  • We anticipate the wave of IT companies rebalancing their real estate footprints will
    continue into H2 2022, so we recommend landlords focus on the activities of their existing IT
    occupiers, to prevent possible vacancies.
  • We recommend tenants focus on the new supply coming online in H2 of 2022, especially
    projects located in the Shangdi and BDA submarkets. Tenants should keep an eye on the market to
    execute office upgrades and adjustments at the right time.

20210812 BJ BP H1 1024972_EN

Beijing | 2022 H1 | Business Park: Rents decline as demand slows

Download Report