Grade A office rents in Beijing rose 1.2% in the first quarter from the previous quarter, the first increase in three years

2022-05-06 0 By

Beijing News April 7, According to data released by Jones Lang lasalle, Beijing’s grade A office market recovered strongly in the first quarter of this year, and the rental level reached an inflection point, from negative to positive, up 1.2% month-on-month, ushering in the city’s first average rent increase in three years.Specifically, rents in all nine sub-markets remained stable or registered positive growth, with the Lize Finance and Business District recording the highest month-on-month rental growth of 7.5%.For the reason of rising rents for grade a offices in Beijing, Jones lang lasalle, head of research at director m Yang said, restricted by winter Olympics, two sessions, part of the tenant late last year backlog of relocation plan to in the first quarter this year, in the first quarter this year demand is relatively active, among them in the first quarter net up to nearly 157000 square meters, more than twice the 2020 full-year net up.In terms of leasing demand, Sunshine said that the financial sector is still one of the main pillars of leasing activities in the city, with large well-known financial tenants contributing significantly to the industry demand.The expansion momentum of TMT industry continues. In the first quarter of this year, the relocation and expansion demand of small and medium-sized technology enterprises is the main one, among which the demand of small and medium-sized area under 3000 square meters accounts for 57% of the total transaction volume of TMT industry in the first quarter of this year.The overall vacancy rate in Beijing’s grade A office market fell to 10.2 per cent, the lowest in the past 10 quarters, as rental demand increased.Among them, the Lize Financial business District sub-market vacancy rate fell 7.5 percentage points, the largest quarter-on-quarter vacancy rate decline in the first quarter of this year.Regarding the future trend of Beijing Grade A office market, Zhang Siliang, director of Beijing Commercial Real estate department of Jones Lang lasalle, said that Beijing Grade A office market will continue to make efforts to achieve further recovery in 2022. The favorable market window for tenants has closed last year, and now it is a balanced market, and the annual rental increase is expected to reach 6.7%.”In the next five years, the supply of Grade A office building market in Beijing is limited. It is estimated that the total market volume is only 510,000 square meters, and the rent is expected to maintain positive growth.””Sunshine said.Beijing News reporter Duan Wenping edited Wu Xin proofread Lu Qian