“Beijing Grade A office market kicked off the year 2025 with steady performance. No new projects were launched in the quarter, while leasing demand has continued to pick up, receiving positive absorptions for seven consecutive quarters. In the short term, landlords will continue the ‘price-for-volume’ strategy, and more importantly rental adjustments will drive up the market trends.”

VINCENT LI, SAVILLS RESEARCH



Beijing office market picks up

• The Grade A office market in Beijing saw the absence of new projects in Q1/2025 and the citywide Grade A office stock adjusted to 14.91 million sqm (including self-use areas).

• In Q1/2025, the leasing demand in the Beijing office market remained stable, with a net quarterly absorption of 52,000 sqm.

• Although no new supply entered the market during this quarter, there was a considerable amount of vacant space waiting for occupiers. Thus, the Beijing Grade A office vacancy rate remained at a high level of 19.8%.

• Meanwhile, Beijing Grade A office rents continued to decline, down by 5.2% QoQ to an average of RMB234 psm pmth.

• In the remaining 2025, the Beijing office market will likely see some decent improvements and regional opportunities, driving the further optimization of the market demand and structure.