“Leasing demand has remained broadly stable, but the upcoming wave of new supply is expected to place greater pressure on landlords and intensify competition across submarkets.” —— Vincent Li, RESEARCH



Stable Absorption Ahead of Supply Surge

•No new Grade A office projects were completed in Beijing in Q1/2026. Total stock remained stable at 14.97 million sqm, including self-use space.

•Leasing activity softened at the start of the year due to the Spring Festival holiday period and related factors, with net absorption of approximately 60,000 sqm recorded for the quarter.

•The Grade A vacancy rate declined by 0.4 ppts QoQ and 1.7 ppts YoY to 18.1%.

•Average Grade A rents continued to fall, down 2.6% QoQ to RMB212.4 psm pmth, representing a 9.2% YoY decline.

•A significant volume of new supply is expected to enter the market in H2/2026, which is likely to reshape supply-demand dynamics and increase competitive pressure across submarkets.