1、Greater China Top Office Supply/Demand Trends13Greater China Top Office Supply/Demand Trends4BEIJINGIn 2022,Beijings Grade A office new supply dropped 32.1%year-on-year(y-o-y)to 423,858 sq m.A total of nine Grade A office buildings completed in the market,the same number of completions as seen in 20

2、21.Impacted by the pandemic,downward economic pressure,and uncertainty in the external environment in 2022,market activity decreased significantly in Beijing.Thus,the annual net absorption for the Grade A office market in the city was 173,000 sq m,down 79.4%y-o-y.The TMT,finance and professional ser

3、vices industries still ranked in the top three in terms of the leasing transactions by area.These industry sectors accounted for 43.2%,25.0%and 13.6%of total Grade A office leasing transaction activity,respectively in Beijing in 2022.With the relaxation of the epidemic control measures and the rapid

4、 release of economic activity,the citys Grade A office market is expected to gradually recover.Both supply and demand are expected to increase significantly compared to 2022.About 2.1 million sq m of new office space is expected to be ushered in over the next three years.The influx of new space will

5、 continue to exert pressure on landlords.Subsequently,market rental will still face some downward pressure in the short term,which should provide tenants with a favourable window of opportunity for lease negotiation.SHANGHAISHENZHENIn 2022,the Shanghai Grade A office market was greatly impacted by t

6、he outbreak of the COVID-19 virus.Still,much new supply entered the citys non-core submarkets,helping the total stock of Grade A office to surpass 15 million sq m.Meanwhile,market transaction volume slowed.The annual net absorption figure for the Grade A office market in Shanghai reached 625,725 sq