Beijing
Beijing, formerly known as Peking, is the capital of China and ranks 7th among the world’s top ten most populous cities with a population of more than twenty million. The nation’s capital city, the meeting point of ancient and modern China, acts as a political, cultural and communication centre and is also considered the country’s economic decision-making hub. The municipality currently consists of sixteen country-level administrative subdivisions, including: Chaoyang, Haidian, Xicheng, Dongcheng, Tongzhou District and etc. To cope with being the bustling capital of the nation, Beijing has a fully developed urban transportation network. The network meets the Chinese capital’s transportation demands by leveraging railways, highways, expressways and air transportation routes. The Beijing Capital International Airport is Asia’s busiest airport – rated by passenger traffic. There are also eighteen different subway lines in operation that connect the various districts in the region. As a truly global metropolis in China, the headquarters of many state-owned enterprises and Global Fortune 500 companies are located in Beijing, driving the healthy development of Beijing office markets. Beijing possesses a number of commercial property projects, such as Beijing Yintai Centre, China Central Place, China World Tower, Fortune Financial Centre and World Financial Centre. With regards to the office market in Beijing, Julien Zhang, Managing Director of JLL North China had this to say, “After several months of significantly softer office demand, particularly from foreign firms, landlords accepted both uncertainty in the market and the realities of a slower economy. This helped them feel less anxious about the future, giving them more confidence to deploy flexible rental strategies at the end of the year." Three completions bumped up net absorption significantly to 193,495 sqm in 4Q16, up 80.3% q-o-q. However, the majority of take-up came from self-use space. References: JLL 2016 Fourth Quarter Beijing Property Review
Chaoyang
Dongcheng
Haidian
Xicheng
The Beijing office market has reached a turning point along its path towards maturity. As new landmark developments in the CBD rise and redefine the skyline, domestic companies are now showing a clear lead in shaping the demand that will absorb Beijing’s next supply peak. Key insights in this paper include: 1.Beijing has reached a key turning point in geographic maturity, tenant composition, and building quality. 2.The time is right to redefine submarket categorisations by expanding the set of “core” areas and defining a new, decentralised market that stands apart on its own, anchored by Lize and Tongzhou. 3.Domestic firms are clearly dominating the market and showing a sharp growth in their share of occupied space across the city, most notably in Finance Street. 4.New forms of financial services and the booming IT industry, supported by upgrades to higher quality space, will serve as important drivers of future demand. 5.Beijing can achieve higher ground by drawing from worldclass benchmarks of quality. References: JLL 2017 Beijing's Office Market Set to Share