The Beijing office market is showing stability with the rise of decentralized offices and growing demand from domestic companies, according to a white paper released by JLL on Thursday.
The vacancy rate for high-quality offices in Beijing has been 5 percent or lower for several years, which makes it one of the tightest in the world.
Other tight markets include Hong Kong and London, both with vacancy rates of 4 percent, the white paper showed.
“As the Beijing office market continues to mature, abundant new supply is coming online and domestic occupiers are dominating the market, and it has large headroom for growth in office demand compared with leading global cities,” Eric Hirsch, head of markets at JLL Beijing, told the Global Times on Thursday.
The finance and information technology industries will serve as key drivers of demand as new areas of finance continue to rise and enthusiasm from IT investors continues to be high.
“Another key driver of office demand is China's 'One Belt, One Road' initiative,” Steven McCord, head of research for JLL North China, said.
As more companies expand overseas, they will need more office space in Beijing for decision-making hubs, he added.