The COVID-19 outbreak severely impacted Beijing’s offi ce market. Both landlords and tenants are facing enormous pressure from the stagnate leasing market in 1H/2020 and have adjusted their leasing strategies to make it through these dark days.

A total of 94,815 sq m of new supply was launched during 1Q/2020, bringing Beijing’s Grade A offi ce stock to 12.38 million sq m (including self-use GFA). Net absorption was down by a remarkable 92.9% quarter-on-quarter (QoQ) to 20,392 sq m in Q1/2020 due to dropped leasing activities caused by the pandemic.

Consequently, the citywide vacancy rate increased by 0.5 of a percentage point (ppt) QoQ and 6.0 ppts year-on-year (YoY) to 13.2%.