Beijing office market began to pick up, and the rent decline narrowed.

The epidemic has brought certain influence to all walks of life, but most industries are recovering steadily after entering the recovery period. In addition to the office market, when the residential rental market has improved, the office buildings here are still in the freezing period, and rents have been falling all the way. When most industries return to the right track, the office rental market can finally be opened.

DTZ, a global real estate service and consulting company, released the report "Beijing Writing Property Market in the Third Quarter of 2020" on the 28th, showing that the rental demand in Beijing office market is picking up, and the rent decline is slightly narrowed.

In the third quarter, in order to improve the competitiveness among business districts and avoid the loss of existing customers, the Beijing Financial Street business district, which ranks first in the country in rent level, continued to adjust this quarter, with a decrease of 2.8% from the previous quarter.

Wei Dong, head of the research department of dtz North District, said that in the third quarter, thanks to the gradual recovery of market rental demand and the effective control of the COVID-19 epidemic, the market rents in Beijing and five core business districts continued the downward trend since the beginning of the year, but the decline was narrower than that in the second quarter. In the third quarter, the retail market in Beijing continued to recover, among which the passenger flow of major shopping centers increased significantly, and some leisure catering brands opened stores against the trend, which drove the consumption activity of the market.

In the third quarter, the market vacancy rates in Beijing and the five core business districts rose to 16.6% and 1 1.2% respectively, both of which hit record highs in the past decade. Lian, head of the enterprise service department and office building department in dtz North District, said that driven by the economic recovery, the new rent and relocation demand of tenants further picked up this quarter, especially in emerging business districts such as Lize and Shangdi, where the rent level is relatively low. So far, Beijing's quarterly net absorption is 85,292 square meters, up 138% from the previous month, of which 96% is located in emerging business districts.

In the second quarter of 2020, there were no new projects in Beijing retail market. The total stock of high-quality retail properties in the city is1410.2 million square meters, of which the stock of shopping centers reaches1210.9 million square meters, accounting for 86.3%.

With the improvement of the epidemic situation, the retail market in Beijing has obviously picked up. Meng Yi, director of dtz North Commercial Real Estate Department, believes that the epidemic has accelerated the format adjustment and store renewal of Beijing shopping centers. It is expected that this trend will continue in the short term, and the market vacancy rate will gradually decrease. In addition, in the "new consumption" action plan put forward by Beijing this quarter, in addition to continuing to promote the "night economy" and "first store economy", it is also proposed that a number of traditional shopping malls will be transformed and piloted. With the demolition of workers' bodies, the commercial upgrading of Beijing urban area will also be carried out one after another. It is expected that urban renewal will remain the main theme of the continuous upgrading of Beijing retail market in the future.