Beijing Office Market Report 2026年 Q1

This report focuses on the Grade-A office market in Beijing, includinginformation about supply and demand, rents, vacancy rates and themarket outlook Overview and Outlook Market stabilises amid growing divergence benefited from stable lease renewalsand selective relocation demand fromhigh‑quality occupiers, resulting ina visible narrowing of rental declinesand continued vacancy compression.By contrast, submarkets includingLufthansa and Yizhuang remainedunder pressure from structuralsupply–demand imbalances, witheither ongoing rental decline or risingvacancy yet to meaningfully reverse. In Q1 2026, Beijing’s Grade‑Aoffice market continued its stockoptimisation phase, with no newsupply delivered during the quarter.Overall conditions showed early signsof stabilisation, as the pace of rentaldecline moderated and vacancy ratesedged lower. The citywide averageeffective net rent stood at RMB217.4per sqm per month, representing a1.1% quarter‑on‑quarter (QoQ) decline.Notably, the rate of decline narrowedby 2.8 percentage points comparedwith Q4 2025, reflecting landlordsreduced reliance on aggressive priceconcessions once used to secureoccupancy. Meanwhile, the averagevacancy rate fell by 0.5 percentagepoints QoQ to 16.5%, underpinned bysteady absorption of existing stock. which for the first time introducesa standalone urban‑renewal quotaalongside plans to revitalise morethan 200 hectares of underperformingcommercial land, is expected tofurther accelerate stock restructuringand reinforce the scarcity value ofhigh‑quality assets in core locations.In the near term, approximately829,000 sqm of Grade‑A office supply isentering its delivery window, with newprojects concentrated in areas suchas the CBD and Lize. This upcomingwave of supply is likely to intensifymarket competition, particularly ineastern and emerging submarkets,where rental pressure is expected topersist. Net absorption is likely toremain volatile, with vacancy ratespotentially experiencing temporaryupward fluctuations. Over the longerterm, however, policy‑driven industrialupgrading and urban renewal areexpected to generate structuralrecovery opportunities. Projectsaligned with priority industries andsupported by meaningful product andquality upgrades are likely to emerge askey market outperformers. Policy signals released duringChina’s 2026 Two Sessions havereinforced a supportive long‑termoutlook for Beijing’s Grade‑A officemarket. Government initiativesto deepen the “AI+” strategy andaccelerate the rollout of newinfrastructure are expected to stimulateoffice demand from technology anddigital‑economy sectors, providingmedium to long‑term support toindustry‑oriented submarkets such asZGC and Yizhuang. At the same time,China’s real estate policy framework isshifting decisively from scale‑drivenexpansion towards quality‑led andefficiency‑focused development.Beijing’s 2026 land supply plan, Submarket divergence becamemore pronounced during the quarter.Industry‑clustered submarkets,most notably Zhongguancun(ZGC), continued to demonstratestrong rental resilience, with rentsremaining broadly flat QoQ. Corebusiness districts such as the CBDand Beijing Financial Street (BFS) Supply and Demand Demand continues to gravitate towards core assets No new Grade‑A office projectswere delivered in Q1 2026, leavingtotal citywide stock unchanged atapproximately 12.639 million sqm.Net absorption during the quarteramounted to 63,027 sqm. Supported byongoing stock digestion, the averagevacancy rate edged down further to16.5%. Leasing demand remainedconcentrated in core business districtsand industry‑clustered submarkets. The CBD continued to be the mostactive submarket, underpinned bymultiple lease renewals and relocationtransactions involving high‑qualityoccupiers, and remained the key driverof overall absorption. BFS and ZGCalso recorded steady leasing activity,supported by sustained demand fromthe financial and technology sectors.Enterprise expansion and relocationcontinued to lift occupancy levels inprime buildings. business districts. Technology demandremained concentrated in ZGC,where leading firms pursued portfoliooptimisation and location upgrades.Domestic enterprises continued todominate market activity, while foreigndemand remained stable overall,mainly supported by renewals frommultinational regional headquarters. preference for mature businessenvironments and superior officespecifications. Notable transactionsduring the quarter included therelocation of China Insurance SecurityFund’s 8,600 sqm office to PacificInsurance Tower in BFS, and SamsungSemiconductor’s relocation of 6,900sqm within the CBD. Overall, corporateleasing decisions remained cautious;however, improving vacancy metricsand greater emphasis on qualitysupported a gradual, measuredrecovery in market absorption. From the perspective of the tenants’industries, leasing demand continuedto be dominated by professionalservices, financial services andtechnology, which together accountedfor the m