A few days ago, Colliers International released a report predicting that the market volume of class A office buildings in Beijing in 2021 will be about 710000 square meters, lower than the expectation at the beginning of the year. The projects entering the market are mainly concentrated in CBD and Lize business district, with a new supply of nearly 138000 square meters in the fourth quarter.
“To a certain extent, a reasonable new supply can calm the impact on the market caused by the concentration of new projects. At present, the two most important new supply sectors in the core sub market of class A office buildings in Beijing, Zhongfu plot in the core area of CBD and most of the projects under construction in Lize business district, have entered the market.” Lu Ming, director of North China Research Department of Colliers International, said.
Colliers International predicts that the net absorption of class A office market in Beijing will be about 1.14 million square meters in 2021. If the self use area is removed, the annual market-oriented area exceeds 950000 square meters, and the demand side mainly comes from the rapid expansion of Internet technology enterprises.
Lu Ming introduced that according to incomplete statistics, within the scope of the office building market, Internet technology enterprises have nearly 1.4 million square meters in bulk lease transactions of more than 5000 square meters (only including new lease and expanded lease). Among them, class A is about 450000 square meters, class B is about 250000 square meters, and the industrial park is about 700000 square meters.
The report shows that the vacancy rate of class A office buildings in Beijing is 15.1%, down 4.4 percentage points from the fourth quarter of 2020. In terms of subregions, the vacancy rate in four markets is less than 10%, Financial Street Holdings Co.Ltd(000402) is 6.9%, Beijing Centergate Technologies (Holding) Co.Ltd(000931) is 7.1%, the Asian Games Village and Olympic Park are 8.8%, and Wangjing is 8.9%.
Since the second half of the year, the rent of class A office buildings in Beijing has shown signs of stabilizing. According to Colliers International, the average rent in the fourth quarter was 340.4 yuan / m2 · month. Although it decreased by 0.2% compared with the third quarter, the decline was further narrowed compared with the end of 2020.
(China Securities Journal)
