Newly Leased Space in Beijing Prime Office Buildings Plunges 21%

The vacancy rate for grade A office buildings in Beijing reached a record high of 16.8% in the first quarter, up 0.5% from the previous quarter

Office leasing in Beijing plunged 21% in the first quarter from the fourth, according to real estate service provider CBRE Group Inc., signaling businesses’ reluctance to expand in a shaky post-pandemic economy.

The data reflect newly leased areas in prime office buildings. The number of deals signed to expand office space rental in Grade A office buildings in Beijing dropped 6% during the first three months from the last three months of 2022. The average expansion area of office rental decreased from 1,700 square meters to 1,400 square meters on a quarter-to-quarter basis, data from CBRE showed.