2023年上半年北京产业园区市场回顾与展望（英文版）-4页_431kb

Summary of Beijing Business Park Market Analysis Report

H1 2023 Market Overview

The Beijing Business Park market did not experience a significant demand rebound in H1 2023. New demand was primarily concentrated in cheaper submarkets like Shangdi, while core areas saw subdued demand. Rents fell by 2.6% year-on-year to RMB 122.0 per square meter per month, with the vacancy rate rising to 17.9% due to tepid demand and new supply. Key data includes submarket variations such as in Beiqing Road and Shangdi, where rents decreased and vacancy rates increased modestly from Q1 to Q2.

New Supply and Future Projections

New supply was evident in H1, with the Beijing Satellite Factory Technology Park entering the market in Q2. Concentrated new projects expected in H2, totaling about 1.23 million square meters, mainly in Shangdi and Beiqing Road submarkets, will intensify competition. This is projected to increase vacancy rates and pressure rents further by year-end, as IT company space adjustments end but new supply dominates. Tenants may face cost reduction trends, leading landlords to adjust strategies and enhance services to attract quality tenants.

Recommendations

• For landlords: Promptly adjust rents and improve service offerings to capture high-quality tenants despite higher costs.
• For tenants: Focus on new supply quality and government incentives, using the period to upgrade or adjust office spaces for timely cost savings.

Key Statistics and Outlook

• Rents declined from Q1 to Q2 2023, with Shangdi submarket recording a sharp drop due to weak demand.
• Vacancy rates have risen steadily since H1 2022, affecting the entire market.
• Market outlook suggests continued downward pressure on rents and rising vacancy rates in H2, based on Colliers analysis.