- May 1, 2016: Vol. 8, Number 5

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Shine on: Beijing’s grade A office market keeps its lustre

by Toshihiro Toyoshima

China’s economy has undergone rapid growth over the past two decades. With China now the world’s second-largest economy and consumer market, behind only the United States, its grade A office market also has developed swiftly, on the back of booming business activities. Because of the sheer size of China, much disparity exists among different cities and their respective office markets. As such, investors seeking opportunities in China’s office sector need to be more selective. While some grade A office markets throughout China have witnessed oversupply and lower occupancies in recent years, Beijing’s office market — the second largest in China — has remained tight. At the end of 2015, Beijing’s grade A office market had an occupancy rate of 97 percent, and estimated new supply coming to market during the next four years stood only at 6 percent of the total stock, compared with an average of almost 26 percent in select major cities across China (see “Comparison of grad

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