Figure 8: Beijing Business Parks Average Rental
and Vacancy Rate by Submarket (2014)
Source: Colliers International
By main submarkets, the most expensive business park
accommodation in Beijing at the end of 2014 was found in the
Wangjing Area, with an average rental of around RMB 6.6 per
square metre per day, followed by Shangdi, with an average
rental of approximately RMB 5.0 per square metre per day.
The BDA, as one of the oldest industrial areas, recorded the
lowest rental in comparison with the other two submarkets,
averaging around RMB 1.8 per square metre per day. The
newly established business park areas such as Tongzhou
and Airport Areas demonstrated average rentals that were
approximately RMB 4.8 per square metre per day.
6. Capital Values and Gross Yields
Figure 9: Beijing Business Parks Average Capital Values
and Gross Yield (2008 to 2014)
Source: Colliers International
The average capital value of Beijing’s business parks has
increased by approximately 103 percent between 2008 and
2014, from around RMB 9,269 per square metre in 2008 to
approximately RMB 18,800 per square metre in 2014. The six
year compound annual growth rate in capital values has been
approximately 12.5 percent.
The average gross yields of Beijing’s business park saw a
downtrend between 2008 and 2012, from 9.64 percent
in 2008 to the record low of 8.11 percent in 2012, before
climbing back to 9.0 percent in 2014.
7. Beijing Business Parks Market Outlook
The contrast between China’s relatively stable economic
growth and the comparative volatility of global markets
should continue to attract multinationals to seek returns in
China. Business park properties are often attractive due to
their design and specifications that meet the demands of
companies requiring R&D or other specialist facilities. They also
often offer lower occupational costs, a major attraction for
many cost-sensitive large space occupiers who are becoming
increasingly detached from Beijing’s traditional office property
market. As such, demand for business parks in Beijing is
expected to maintain an upward growth trajectory over the
next few years.
However, due to a large volume of new supply over the next
few years, the vacancy rate may increase to around 16 to
20 percent.
Nevertheless, rentals are expected to grow by around 3 to
5 percent per annum in the next three years particularly
in the Wanjing areas. Limited investment demand and
insufficient supply of en-bloc sales should cause capital
values to remain stable.
RMB per square metre per day
Rental
7.00
6.00
60%
5.00
40%
2.00
0%
0.00
50%
3.00
20%
10%
4.00
30%
1.00
4.97
1.84
4.80
6.60
27.4%
Vacancy Rate
BDA
Shangdi
Wangjing
Others
8.7%
2.6%
50.2%
RMB per square metre
20,000
10.0%
16,000
9.0%
10,000
7.5%
6,000
4,000
2,000
18,000
9.5%
12,000
8.0%
14,000
8.5%
8,000
0
7.0%
9.6%
8.7%
9.5%
8.1%
9.2%
8.5% 9.0%
Average Capital Value
Gross Yield
2008
2010
2012
2009
2011
2013
2014
9,269
10,101
11,564
14,064
17,342
18,800 18,000
76 77
