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Report: Beijing’s grade A office rentals to drop in 2018

By Chen Meiling and Hu Yuanyuan | chinadaily.com.cn | Updated: 2018-01-25 16:47
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Average rental rates of grade A offices in Beijing are expected to drop 1.2 percent year-on-year in 2018 during the peak time for office space, according to a report from real estate consultancy Colliers International.

A total of 11 new projects will be completed in 2018, with a gross area of 1 million square meters, to provide more leasable office space in the market, according to the report.

Besides, 14 percent of grade A offices in Beijing are expected to remain vacant by the end of 2018, compared with a vacancy rate of 8.3 percent in late 2017, the report said. Thanks to the strong economic performance last year, around 341,000 sq m of office space were rented out last year, up 77 percent over 2016.

Colliers International said the decrease in rentals this year is good for tenants to save money and make better decisions in selecting office addresses.

Property owners were suggested to improve quality and services under such circumstances, it said.

Last year, the average monthly rental price grew 0.4 percent to reach 331.8 yuan ($52.4) per square meter, due to steady demand and the introduction of new offices with relatively high rents, it said.

Demand was mainly from domestic companies in diverse industries, including finance, consulting, information technology, real estate, media and manufacturing.

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