Beijing, being a commercial and an industrial powerhouse, has become the cultural, scientific and economic center of the Peoples Republic. Modern industries have developed rapidly in Beijing with a wide range of industries ranging from steel, chemicals, cement, electronics, and machinery to textiles, motor vehicles, petrochemicals, and processed foods. The above growth has led to an increase in the office rental Beijing.
According to a market research and survey, grade A office rental prices in Beijing and Shanghai will beat other Chinese cities. And in addition to that, grade A office rental demand in Beijing most likely will surpass Shanghais level in a couple of years.
Net absorption in Beijing for example, in 2012, amounted to 328,889sqm. This combined net absorption is larger than in Shanghai, Guangzhou and Wuhan (314,999sqm) together. The office market in Beijing is expected to receive a strong demand. Multinationals and SMEs continue to expand their operations, as they look for close tie ups with the policy makers and require office space to work out of, which they will prefer to rent than buy.
Rental appreciation continues to be at pace, as the vacancy rates are expected to become compressed further. Offices in Beijing are conveniently located close to the headquarters of numerous multinational companies, Chinese national enterprises and government offices, making it convenient for a business of any size to expand.