This report is based on the findings of CBRE’s survey of just under 3,000 tenants in 94 Grade A office buildings and just under 900 tenants in 52 Grade A business park projects, all in Beijing. General statistics for the Beijing market are also presented in the accessory infographics China Office Tenant Profile 2019 Beijing and China Business Park Tenant Profile 2019 Beijing.
- Securities/Funds/Futures/Trusts of Finance and Technology have been the fastest-growing sub-sectors over the past three years. Technological innovation and the development of asset management will spur new leasing demand from the TMT and the non-banking financial sector, respectively, ensuring office demand in Beijing remains resilient. Large-scale new supply will also activate latent demand.
- Domestic companies have replaced foreign enterprises as the dominant occupiers in the Beijing Grade A office market, and will remain the mainstay of leasing demand. The removal of multiple barriers to foreign investment in the service industry, especially in the financial sector, will support a recovery in demand from overseas occupiers.
- Non-core office submarkets accounted for over half of overall net absorption over the past three years. Business parks have emerged as supplementary locations, attracting expansion and upgrading demand.
- The coming three years will see the addition of substantial new Grade A office supply in the Beijing CBD, creating opportunities for tenants to upgrade to high-quality cost-effective office space. Improvements to infrastructure and transportation will facilitate the spillover of leasing demand to non-core submarkets such as Lize and business parks located in Beijing's peripheral areas. In addition, both the delivery of key inter-city transportation and amenities and owner-occupiers moving into self-owned properties will support the development of emerging areas such as Fengtai and Tongzhou, resulting in the migration of tenants further eastward and southward.
- The volume of agile space stock in Beijing has increased five-fold since 2015. However, due to high rents and the scarcity of prime space. Agile space will become an established option for large- and medium-sized companies seeking to complement their Grade A office footprint in core markets. This will help support the emergence of high-growth enterprises as future Grade A office tenants. Agile space providers will also be more active in expanding to Grade A office buildings in core submarkets as they seek to cater to large occupiers striving to optimize their office footprint.