Core Insights - The Beijing Grade A office market is experiencing a high vacancy rate and stagnant rental levels, indicating a deep supply-demand game that requires controlling new supply and activating corporate demand [1][4] - The second quarter of this year saw a net absorption of 32,000 square meters in Beijing's Grade A office market, marking eight consecutive quarters of absorption, with a stable vacancy rate around 20% [1][4] - The Zhongguancun area has shown remarkable performance, achieving a cumulative absorption of nearly 160,000 square meters over four consecutive quarters, the fastest rate on record [1][6] Market Overview - Beijing's Grade A office market has a total area of 13.1 million square meters, with a vacancy rate of approximately 20% as of the end of the second quarter [2][4] - Rental prices in Beijing's Grade A office market have declined to levels seen in 2011, with specific areas like Zhongguancun experiencing significant drops in rental prices [2][4] Demand Dynamics - The demand for office space is highly concentrated in areas with rising industrial capabilities, such as Zhongguancun, Lize, and Financial Street, indicating a trend of market differentiation [5][6] - The technology sector is driving demand, with Zhongguancun's key enterprises reporting a total income of 3.2 trillion yuan in the first five months of 2025, a year-on-year increase of 7.3% [6] Rental Trends - The average effective rent for Grade A offices in Beijing fell to 235.6 yuan per square meter per month, with a slight decrease of 2.9% quarter-on-quarter, the smallest decline in three quarters [4] - Despite the overall downward trend in rental prices, some high-end offices in Zhongguancun have achieved full occupancy after price reductions [6][7] Future Outlook - The market is expected to enter a dynamic balance phase, with a projected low point in new supply in 2025, which may create favorable conditions for a continued decline in vacancy rates [4][5] - The Lize Business District and Financial Street are also showing strong absorption trends, with Lize's vacancy rate dropping to 21.5% and Financial Street maintaining the lowest vacancy rate in the city at 11.7% [9]

Core Insights - The report from Colliers International indicates that the net absorption of Grade A office space in Beijing reached 32,000 square meters in Q2 2025, marking the eighth consecutive quarter of positive absorption [1] - The demand in Beijing's Grade A office market is characterized by a "westward expansion and stable east" trend, with new demand concentrated in strategic areas such as Zhongguancun, Lize, and Financial Street [1] - The Q2 market continues the trend of "total reduction and regional differentiation," with Zhongguancun's net absorption surpassing 60,000 square meters in the first half of the year, achieving a record high for four consecutive quarters [1] Regional Performance - Lize Business District maintained strong absorption momentum in Q2, with a net absorption exceeding 20,000 square meters and a total of over 50,000 square meters in the first half of the year [2] - Financial Street remains a stabilizing force in Beijing's office market, with a vacancy rate of 11.7%, the lowest in the city [3] Market Outlook - The Beijing Grade A office market is entering a phase of deep supply-demand negotiation, with 2025 marking a low point for new supply over the next three years, creating favorable conditions for a continued decline in vacancy rates [3] - The structural changes driven by differentiated industrial genes are expected to catalyze a breakthrough, potentially leading to regional bottom opportunities and value inflection points in the Grade A office market in the second half of the year [3] - The technology-driven new cycle is anticipated to prompt more companies to shift from inefficient assets to high-quality assets, with rental adjustments allowing for greater flexibility in location choices [3]