“The sustained influx of new office supply in the coming years will intensify market competition and usher the supply–demand rebalancing process into a more challenging phase.” –– Vincent Li, Savills Research.

Office Market Faces New Challenges

• No new Grade A office projects were delivered in Beijing in Q4/2025. Total Grade A stock remained stable at 14.97 million sqm at end-2025, including self-use space.

• Leasing activity eased slightly in Q4/2025, with net absorption of 69,000 sqm, down 22.3% QoQ.

• Citywide Grade A net absorption totalled 292,000 sqm in 2025, up 0.4% YoY.

• The Grade A vacancy rate fell 0.5 ppts QoQ to 18.5% in Q4/2025, down 1.5 ppts YoY.

• Average Grade A rents continued to decline, falling 2.6% QoQ to RMB218.0 psm pmth in Q4/2025, down 11.7% YoY.

• A new supply cycle is expected over the coming years. The projected influx of Grade A completions will intensify competition and may slow the market’s progress towards supply–demand rebalancing.