Commercial Real Estate Overview

The Beijing commercial real estate sector primarily formed in the mid-80's and experienced rapid development from 1992 to 1994 and a recession period from 1997 to 1999 caused by over-supply and the Asian financial storm. 2006 witnessed strong office sales transactions with demand derived from both domestic buyers and foreign institutional investors, encouraged by a combination of factors including Beijing's strong economic growth, WTO accession, the 2008 Olympics and RMB appreciation.

There are more than 800 office buildings in Beijing, over 160 of which are Class-A and providing total commercial floor space of some 5 million square meters, mainly concentrated in the east of Beijing, the city's Financial Street and the Zhongguancun area.

1. Eastern area: The supply of commercial office space in this area is about 3.50 million square meters and the area has become popular because of convenient transportation, a developed road network, rich international resources and short distance from the Beijing International Airport. Sixty percent of the international institutions in Beijing and more than 50% of star-rated hotels in Beijing are clustered in this area, which has all of the conditions needed to be an international business center, therefore becoming the first choice for foreign-invested companies.

2. Financial Street: The city's specially constructed international financial and business district has many financial enterprises and governmental departments headquartered there, including the head office of the People's Bank of China (PBC), Industrial and Commercial Bank of China, China Construction Bank and the China Agricultural Development Bank. Financial Street is fully equipped with facilities including for commerce, residential housing and international hotels. Three world-famous five-star hotels including the Ritz Carlton, Intercontinental and Westin have settled here as well. Many projects along the Financial Street are under construction, so the whole area will be more mature and more functional when they are all completed in 2008. The total supply of commercial office space is 1.10 million square meters.

3. Zhongguancun Area: Many international large-scale IT companies such as AMD, Gameloft, Hitachi and Intelligence Technology have settled in the Zhongguancun area, as the area has become known to favor international scientific and technological enterprises.

Besides the three original commercial core areas including the CBD (from Guomao Qiao to Dongsihuan), Zhongguancun and Financial Street, new commercial clusters have emerged. For example, the degree of commercial concentration is rapidly increasing in Dong'erhuan, Chaowai, Dongsanhua, Sanyuan Qiao, Yansha and along Chang'an Jie.

The average selling price of Beijing office buildings in 2006 was 16,789 RMB/sq.m, an increase of 13.3% over the previous year. The vacancy rate was 18.5% in 2006, a decrease of 24.4% over 2005, with vacancy rates for Class-A buildings dropping to 17%. The average selling price of top quality office buildings was 21,680 RMB/sq.m. Those with selling prices of 10,000 to 20,000RMB/sq.m had the largest transaction volume.

The CBD area has the highest rents among all office buildings, with average rents of Class-A buildings at 7RMB/sq.m/day and with some top class buildings at more than 10 RMB/sq.m/day. The city's Financial Street is next in line with average rents of 6 RMB/sq.m/day. Zhongguancun area ranks third, with average rents of 5 RMB/sq.m/day. Global Fortune 500 enterprises rent offices in the CBD area and foreign-invested companies account for a high proportion of high-quality office space tenants. 

Average Rents in the First Half of 2007 (RMB/day/sq.m)

Area Top level Grade-A/Sub-A Grade-B Grade-C
CBD 10 7 5 3.5
Zhongguncun 9 6 4 2.8
Financial Street 9 5 4 2.7


Commercial Leasing Comparison Chart for Xicheng District
Beijing (June, 2007)
 

Building Address Price (RMB/m2/day)
Kaichen Plaza A129 Xuanwumen Xidajie 10
International Enterprise 35 Jinrong Jie (Financial Street) 9.9
International Financial Center 7 Quarter A, Jinrong Dajie (Financial Street) 9.4
Ocean Plaza 158 Fuxingmennei Dajie 9
Britain Blue International Finance Center 7 Quarter A, Jinrong Dajie (Financial Street) 8
Canway 66 Nanlishi Lu 7
Yingtai Business Center 8 Jinrong Dajie (Financial Street) 6.7
Yanjing 19 Fuxingmenwai Dajie 5.8
Yuetan 2 Yuetan Beijie 5
Guorun 8 Fuwai Dajie 4.5
Zhongtang 110 Xiwai Dajie 3.8
Beiguang 23 Huangsi Dajie 3
Taifu B10 Dewai Dajie 2.4


Commercial Leasing Comparison Chart for Haidian District
Beijing (June, 2007)
 

Building Address Price (RMB/m2/day)
Triumph Mansion A143 Xizhimenwai Dajie 8.5
Raycom Infotech Park 2 Kexueyuan Nanlu, Zhongguancun 7.5
Sigma 49 Zhichun Lu 7
Ideal International 2 Zhongguancun High-tech Plaza 6.2
Tengda 168 Xizhimenwai Dajie 5.6
Splendid Times 7 Zhongguancun Xiqu 5.6
Culture Mansion 59 Zhongguancun Dajie 4.6
Cyber Tower 2 Zhongguancun Nandajie 4.5
Jinqiu International Mansion 6 Zhichun Lu Dongkou 4.5
Pacific International Plaza 106 Zhichun Lu 4.0
Daheng Scitech Mansion 3 Suzhou Jie 4.0
Ruihai 53 Lianhuachi Donglu 3.5
Keshi A28 Shangdi Xinxi Lu 3.5
Yingzhi 49 Suzhou Jie 3.2
Century Technology and Trade Plaza 66 Zhongguancun Donglu 3.3
Chunsheng Taike Mansion 27 Shangdi Information Industrial Base Donglu 2.5


Commercial Leasing Comparison Chart for Chaoyang District
Beijing (June, 2007)

Building Address Price (RMB/m2/day)
Beijing Development 5 Dongsanhuan Beilu 8.8
Guo'an 1 Guandong Beidajie 7
Derun A3 Yong'anli Dongjie 6.2
Avic 2 Dongsanhuan Lu 5.9
International 19 Janguomenwai Dajie 5.1
The Spaces 8 Dongdaqiao Lu 5.0
Yuanda Center 5 Huizhong Donglu 4.8
Prime Tower 22 Chaoyangmenwai Dajie 4.7
Jiadu 14 Guanghua Lu 3.8
Fengyuan 12 Shifoying Xili 2.2
Hengtai 1 Shilibao Lu 2.0
HK & Macao Center 2 Chaoyangmen Beidajie 9.4
Oriental Kenzo 21Dongzhimenwai Zhongjie 6.5
Global Trade Center Beisanhuan Donglu 6.0
Jintai B 1 Xibahe Nanlu 5.5
Grand Orient A2 Dongzhimenwai Xiaojie 4.8
Wangfu Century Plaza 55 Dong'anmen Dajie 4.5
Jingang Mansion 23 Gulouwai Dajie 4.0
Tianhong Baojing Mansion 191 Anwai Dajie 4.0
Zifeng 1 Dayabao Hutong 3.3
Jingbao 184 Anwai Dajie, Dongcheng District 2.8


Commercial Leasing Comparison Chart for Xuanwu District
Beijing (June, 2007)

Building Address Price (RMB/m2/day)
Zhongjingxin International 38 Guang'anmennei Dajie 8.0
National Power Communication Center B2 Deyuan Hutong, Baiguang Lu 7.0
Guang'an 6 Guang'anmen Nanjie 5.5
Guotai 2 Nancaiyuan Jie 5.5
SuYuan-JinJiang Hotel 3 Guangwai Dajie 5.1
Central Plaza 92 Zaolin Qianjie 4.8
Xiaoxiang 42 Beiwei Lu 4.6
Haige International Hotel 92 Xuanwumenwai Dajie 3.4
Hongmian Commercial 65 You'anmen Dajie 2.6
Huashang Sci-Tech 99 You'anmenwai Dajie 2.3
Jianan 65 You'anmen Dajie 1.7


Commercial Leasing Comparison Chart for Chongwen District
Beijing (June, 2007)

Building Address Price (RMB/m2/day)
Beijing New World Zhengren Plaza 9 Chongwenmenwai Dajie 5.0
Taoran 1 Majiabao,Taoran Qiao, Nan'erhuan 5.0
Jinlun 40 Chongwenmenwai Dajie 4.5
Talent international 80 Guangqumennei Dajie 4.0
Weitu 108 Beisihuan Donglu 3.6
Dehui 29 Xingfu Dajie 2.8
Dakang 44 Chongwai Dajie 2.3


Commercial Leasing Comparison Chart for Fengtai District
Beijing (June, 2007)

Building Address Price (RMB/m2/day)
Shengjin Building 2 Lianbao Lu, Beijing 4.2
Gongjiao (Public Transit) 29 Yanhuachi Xili 4.0
Beijing Construction A5 Guanglian Lu 3.0
Meike 57 Xisanhuan Nanlu 2.7
Beiheng 120 Lianhuachi Donglu 2.5
Liye 71 Majiabao Donglu 2.2
Haoli 18 Longqing Jie 2.0
Xiangfengyun 8 Fengguan Lu 1.8


Commercial Leasing Comparison Chart for Other Districts, Beijing (June, 2007)

Building District Address Price (RMB/m2/day)
Yuquan Shijingshan 3 Shijingshan Lu 3.5
Wanke Shijingshan 22 Shijingshan Lu 3.3
Dianke Shijingshan 35 Lugu 3.0
Huayuelong Shijingshan 3 Jingyuan Lu 2.0
Tianyu Daxing 22 Wanyuan Jie 2.5
Jianhua Daxing Dayangfang Exit of Jing-Jin-Tang Expressway 2.0
Liandong Commercial Center Tongzhou 1 Jinghai Qilu 1.6


Minimum Land Transfer Prices for Industrial Purposes(RMB/sq m)

District/County Price
Chaoyang, Chongwen, Dongcheng, Xicheng, Xuanwu, Fengtai, Haidian, Shijingshan 720
Tongzhou 384
Daxing, Changpin, Shunyi 336
Mentougou, Fangshan 288
Huairou 252
Pinggu, Minyun County and Yanqing County 204

 

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