Core Insights - The Beijing Grade A office leasing market is expected to show a pattern of "partial recovery and overall pressure" in Q4 2025, driven by the expansion of high-tech tenants, while landlords will continue to adopt a "price-for-volume" strategy to accelerate leasing [1] - Tenants are becoming more proactive in their leasing decisions, focusing on cost optimization and incorporating green attributes into their decision-making processes [2] - The volume of bulk transactions in the Beijing office market is anticipated to increase in Q4 2025, with sellers likely to offer price concessions to facilitate sales [3] Group 1: Market Outlook - The leasing market is expected to see increased activity from high-tech tenants, but overall market stability remains uncertain due to economic recovery pace and upcoming supply in 2026 [1] - Landlords are likely to enhance flexibility in leasing terms to attract quality tenants amid ongoing market challenges [1] Group 2: Tenant Behavior - Tenants are shifting from passive acceptance of existing conditions to actively seeking cost-effective office spaces, potentially leading to early lease terminations and relocations [2] - The emphasis on ESG (Environmental, Social, and Governance) compliance is rising, with tenants prioritizing green building certifications and renewable energy supply in their leasing decisions [2] Group 3: Bulk Transaction Market - The bulk transaction market is expected to see improved activity as sellers increase price concessions, particularly for quality properties in established business districts [3] - There is a notable price negotiation gap between buyers' expectations and sellers' bottom lines, which may hinder transaction volumes [3] Group 4: Recommendations for Tenants - Tenants are advised to take advantage of year-end rental discounts and initiate discussions with landlords to secure preferred spaces [4] - In terms of green initiatives, tenants should prioritize certified green buildings and consider collaborating with landlords for green upgrades [4] Group 5: Recommendations for Landlords - Landlords should develop customized leasing strategies based on tenant characteristics to enhance leasing efficiency [5] - Offering attractive terms for high-value tenants can help build a sustainable leasing ecosystem [5] Group 6: Recommendations for Buyers and Sellers - Buyers are encouraged to leverage the year-end asset allocation window and adopt competitive bidding strategies [6] - Sellers should focus on realistic pricing and tailored incentives to meet the diverse needs of different buyer types [6] Group 7: Market Performance Data - The average effective rent for Grade A offices in Beijing decreased by 5.0% to 220 RMB per square meter per month, with a vacancy rate of 17.6% [9] - The bulk transaction market saw a significant decline in total transaction value, dropping 84% to 750 million RMB, indicating cautious buyer sentiment [16]

Core Insights - The Beijing Grade A office market is showing signs of a potential turning point, with the third quarter of this year recording a net absorption of 125,000 square meters, the highest quarterly figure for the year, marking nine consecutive quarters of absorption [1] - The vacancy rate has decreased to 19.3%, a decline of nearly 1 percentage point from the previous quarter, falling below 20% for the first time this year, indicating a short-term alleviation of market vacancy pressure [1] Group 1 - The core submarket of Zhongguancun has seen a significant net absorption of over 63,000 square meters this quarter, marking the second time in five quarters that it has exceeded 60,000 square meters in a single quarter [1] - The vacancy rate in Zhongguancun has dropped to 15.1%, with a quarter-on-quarter decline of 3.9 percentage points and a year-on-year decline of 4.6 percentage points, representing a substantial decrease of 5.9 percentage points compared to two years ago [1] - Among the 24 Grade A office projects monitored by Colliers International, 14 projects have a vacancy rate of less than 10%, with 10 projects having a vacancy rate below 5% [1] Group 2 - Colliers International believes that as Beijing accelerates the construction of an international technology innovation center, the Zhongguancun market is beginning to benefit from the industrial dividends brought by the growth of new productive enterprises [2] - The sustained increase in demand from the Zhongguancun submarket is expected to position it as the first submarket in Beijing's office market to stabilize and potentially see a rise in rental prices [2] - However, the overall demand side of Beijing's office market is still under pressure, as the new office space demand generated by technology enterprises is not sufficient to stabilize the entire market [2]

Group 1 - The Beijing office market is showing signs of recovery, with a slight decrease in vacancy rates and continued downward pressure on rents, particularly in the technology sector [1][2] - As of the end of Q2, the vacancy rate for Grade A office buildings in Beijing decreased by 0.2 percentage points to 18.4%, reversing the upward trend seen in Q1, with a net absorption of 12,960 square meters [1] - The technology sector is the primary driver of leasing activity, accounting for 34% of total transaction area, followed by finance and professional services at 22% and 16% respectively [2] Group 2 - Despite a slight decrease in vacancy rates, rental prices continue to face pressure, with Grade A office rents in Beijing declining by 1.6% quarter-on-quarter to RMB 233.1 per square meter, a 7.4% decrease compared to Q4 2024 [2] - The Financial Street area, known for its high rents, saw a 6.1% decline in Q2 rents, dropping below RMB 400 to RMB 389.2 per square meter, an 8.7% decrease from Q4 2024 [2] - The Zhongguancun area experienced a 3.2 percentage point decrease in vacancy rates to 12.8%, despite a 1.0% decline in rents to RMB 258.2 per square meter [3] Group 3 - The overall rental trend for Grade A office buildings in Beijing continued to decline, with a 4.0% quarter-on-quarter decrease and a 16.8% year-on-year decrease [3] - The market is expected to face a supply peak in 2026, with an anticipated 757,000 square meters of new office space, which may further pressure rental prices [3] - The market is currently in a stabilization phase, with limited room for landlords to reduce rents, while future demand may be driven by 20 emerging industries identified in the Beijing government’s development guidelines [3]