Beijing, formerly known as Peking, is the capital of China and ranks 7th among the world’s top ten most populous cities with a population of more than twenty million. The nation’s capital city, the meeting point of ancient and modern China, acts as a political, cultural and communication centre and is also considered the country’s economic decision-making hub. The municipality currently consists of sixteen country-level administrative subdivisions, including: Chaoyang, Haidian, Xicheng, Dongcheng, Tongzhou District and etc.
To cope with being the bustling capital of the nation, Beijing has a fully developed urban transportation network. The network meets the Chinese capital’s transportation demands by leveraging railways, highways, expressways and air transportation routes. The Beijing Capital International Airport is Asia’s busiest airport – rated by passenger traffic. There are also eighteen different subway lines in operation that connect the various districts in the region.
As a truly global metropolis in China, the headquarters of many state-owned enterprises and Global Fortune 500 companies are located in Beijing, driving the healthy development of Beijing office markets. Beijing possesses a number of commercial property projects, such as Beijing Yintai Centre, China Central Place, China World Tower, Fortune Financial Centre and World Financial Centre. With regards to the office market in Beijing, Julien Zhang, Managing Director of JLL North China had this to say, “After several months of significantly softer office demand, particularly from foreign firms, landlords accepted both uncertainty in the market and the realities of a slower economy. This helped them feel less anxious about the future, giving them more confidence to deploy flexible rental strategies at the end of the year." Three completions bumped up net absorption significantly to 193,495 sqm in 4Q16, up 80.3% q-o-q. However, the majority of take-up came from self-use space.
References: JLL 2016 Fourth Quarter Beijing Property Review