Categorized | International

Beijing Office Rental Market Is Booming

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While the Chinese residential real estate market has faced tough restrictions that have led to declines in the past six months, the office real estate sector has been booming in the country’s largest cities. In Beijing, the office market saw rents grow by forty-one percent in the last year.

During the last year, supply has grown at roughly the same pace as it did in 2010, though the new supply surfaced in different areas. The incredible growth is excellent news for the commercial real estate market in China. Uncertainty in the global economy had caused fears that the growth would be severely impacted, and that the market would struggle as a whole. However, the Beijing market outperformed all expectations, even in the midst of a very turbulent fourth quarter.

While rents continue to increase at an incredible pace, there are still many clients on a waiting list to rent any possible office opening that may surface. The office space is being rented by a variety of different business sectors, and it is that diversity in clientele that continues to push up the average rate. Financial services companies, consulting firms, law offices, and high-tech companies are all competing for office rentals in Beijing, and are willing to pay a premium for optimum location and sufficient space.

Similar growth is expected in the next year, as there are still many potential renters in the wings waiting for a space to be made available. Vacancy rates will continue to remain at a low rate, as well, which will only contribute to a rise in rents across the city.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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