Technology is profoundly reshaping the competitive landscape of Beijing's office property market. As an economic barometer, Beijing's commercial real estate is showing signs of stabilization after a prolonged downturn. Among the areas, Zhongguancun has demonstrated robust resilience as an "industry-supported" market, driven by the clustering effect of tech sectors like artificial intelligence and integrated circuits. It is not only the sole sub-market in the city to record a sequential increase in rents but is also stimulating a recovery in the bulk transaction market.
Emerging Industries Drive Market Stabilization
The AI boom has created numerous winners. Data from Knight Frank shows that over the past year, Beijing's office inventory has continued to be absorbed, easing the previous pressure of oversupply slightly. The city's average vacancy rate stands at 15.9%, up a marginal 0.1 percentage points sequentially but down 2.5 percentage points compared to the same period in 2025. Notably, in the first half of this year, Zhongguancun led the city in rent resilience, leveraging its industrial cluster advantages in AI and integrated circuits. Data indicates that driven by concentrated demand from the tech sector, Zhongguancun recorded several new lease transactions in H1. For instance, Suanmiao Technology moved into Yingu Plaza, leasing 3,000 square meters, while Suanzhi Future leased 3,712 square meters in Sigma Tower.
Beyond significant absorption, in Q2, while the average effective net rent for Beijing's Grade A offices fell 0.8% sequentially, the average rent in the Zhongguancun area was 251.4 yuan per square meter per month, a slight sequential increase of 0.3%, already surpassing the average rent of the CBD. "Benefiting from the continuous expansion and leasing by AI, chip, and equity investment firms, Zhongguancun's vacancy rate has remained stable below 10%, showing outstanding rent resilience. It is also the only sub-market in the city with a sequential rent increase," Knight Frank stated. Huang Wei, Managing Director for North and East China at Knight Frank, believes Zhongguancun's standout performance is not merely due to price competition but is supported by genuine demand from the ongoing expansion of AI, integrated circuits, cloud computing, and tech investment institutions. The early rebound of Zhongguancun fully reflects the resilience and competitiveness of "industry-supported markets" in the current cycle.
Bulk Transaction Activity Rises in First Half
The dynamics of bulk transactions also highlight the activity of tech firms. Data from CBRE shows that in the first half of this year, the cumulative transaction value for bulk deals in Beijing reached 25.7 billion yuan, a 50% year-on-year increase, marking the highest level for the period since 2022. Knight Frank data shows that in Q2, the bulk investment market for Beijing's Grade A offices was still dominated by domestic capital. The transaction structure further tilted towards industrial sellers, with the proportion of purchases for self-use by tech firms increasing, while pure financial investments continued to decrease, with capital concentrating in the Zhongguancun tech zone. In Q2, Zhipu AI acquired a roughly 22,700 square meter Grade A office building in Zhongguancun for approximately 361 million yuan, planning to hold it for AI large model and computing power R&D. Additionally, Beijing Jinting Real Estate, controlled by China Life, secured the core Z10 plot in the CBD with a reserve price of 2.993 billion yuan. The plot covers 8,046 square meters with a planned floor area of 120,000 square meters, designated for commercial and financial use.
"Overall, financial investments driven by rental returns in the current investment market are becoming more cautious, while self-use buyers with industrial demand are relatively more active. Capital is focusing more on high-quality assets deeply integrated with regional industrial foundations and possessing long-term development potential. It is expected that the performance divergence between different business districts will continue," Knight Frank noted.
Digital Capabilities Become Key to Breaking Through
It's not just industrial parks and office buildings; possessing digital capabilities has become a critical factor for traditional commerce to break through. Yang Zhi, Head of Valuation and Advisory Services for Beijing and Head of Securitization at Cushman & Wakefield, stated that with the launch of the first batch of commercial real estate REITs, public REITs have officially entered a dual-driven era of "infrastructure + commercial real estate," ushering in a significant policy window for the securitization of commercial real estate assets.
Yang Zhi indicated that the operational quality and cash flow stability of the underlying assets are the core determinants of REIT value. Professional and refined asset management capabilities may become the core threshold for real estate assets accessing capital markets in the future. Data from Cushman & Wakefield shows that since the launch of commercial real estate REITs at the end of 2025, the issuance side has responded actively. Currently, 22 REIT products have been submitted to the exchange, with 4 successfully listed, indicating rapid overall market development. In terms of asset portfolios, the underlying assets of this batch of REITs cover formats including office buildings, shopping centers, outlets, and hotels, offering richer asset types. This opens revitalization channels for more existing assets and provides more allocation choices for the capital market.
Although the market has provided a path for asset revitalization, not every format is favored. Meng Yi, Head of Northern China Retail at Cushman & Wakefield, stated that the current commercial real estate market is experiencing intensified divergence. Flagship shopping centers and top-tier outlets in core cities, relying on stable operational performance, have become high-quality underlying assets highly recognized by the capital market. This trend stems from structural changes in five dimensions—consumer behavior, customer demographics, and experiential demands—which have fundamentally reshaped the value logic of commercial assets.
"The K-shaped divergence in domestic consumption continues to deepen. Mass consumption is shifting from mere shopping to diverse experiential needs like socializing, leisure, and cultural tourism. The experiential value of offline commerce has surpassed traditional retail value. Today, an omnichannel operation model combining 'offline immersive experiences + online private member engagement' has become standard for quality projects. Traditional commerce lacking digital capabilities continues to depreciate and exit the market at an accelerated pace. The industry has entered an era of improving existing stock. Core commercial projects with differentiated experiences, digital capabilities, and high-quality experiential formats will continue to lead the market," Meng Yi concluded.
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