Beijing Figures Q3 2022

CBRE FIGURES1BEIJING1C32022 Newsupplydrivesupretailandlogistics netabsorption Teble*-Quo<Statisilcs +0.7% SLH -5.8% Rralali +7.6% =xr.sctInatm. H1222*-0-* office q-0-q Y-t-d Y-o-y Reril -1 -1.2%, O:FP +1.1FP +2Cp3 Vasarcs Retail 2-- y-t-d Kent 1.22 12* Vargrcy -07e Laglstles +G.5p29-89 +0.4pP y-td Reril +1.02 +24% +3.252 ASJA ./=p 2p? BusineeePark y-t-d A-0-A Hrnt x4*. 1i% vacarcy 1C2p 1".3pp -C.8pp Inwcstmen! -t-dtotal,y-0-y 18.78 -266% -72.5*% D:instc. 1.5%. 31.13 -72.55 I-.=OTcrmr.ithc::-rxt'M*2*x***CFael*2wI*'3-l*war.Ik=m:eiv="g:shkpgm3c=a2n. f.+.:::Ir'ilf.;+:l+:1iv;.+x:.s.h- -h,**$***ar*r11**,I-r*,I*(1ra,*:*di:1t1*wx:?*rnc(d-c*-1,*x**1?F*1I-n1*:*]-P-?*-hym.*-I-*u?.*>. 30,/:6,CERIXK4N232722 F+r**aa.r1*ajin,riiS1.-li-li's+a.+f.:m? ExecutiveSummary ‒ OfflcetYrir-r:-I:nte:1eup:lyntci.n'tn~r:esthr:kvstsinn21tTat:ileose:rixir:hy>o%1? ‒ dnBd1pRd Reteil:hradecentralsedmellspa1edmithhlghozupanTrareleeeofpgn:-,dernandto'new stcres[ushedpnetgbsorstlcnteItshlghestevglIntvaqtartas.vagroyrosessem>lstinprpgtiesac,istasthgi'tracmlxKentscon:lnuedtodecllrebu:ataswgrzace. ‒ Loglstics:Thuwject:delitedIrisquanler,puslingup--ds.JpplyL:anwarrusllhrgh Vaxxmcri:I:il:flighesitcve12i.Fuidrigai.idsmtspar.fotcase.Rr:tmstcherkndcl: strenge'9veiaμeren.algiu.h2ned'ng'light-lu*-cosl9ctivitv. Buelnes6Park;Waakerlaasingdemanda1ddcursizinghyMuniorrsgdtcna:etivsneta;scrptrard pslarlsassuzma'<etparformansaKlsingveca1c3ndvakertra1axpgct9ddema1dpremstedncre Ian:iln'ds'rrmthr.:ri*rr/(:araataIav.arreits. Investmenthatghhenulbe'c'edsinc"edsed..I9l'ssct'onvolume'dslcrnev-2-v.Sel'-usebJyes 1ull+leeslJllilrlusl'iesWe'e2cliveac'ussycive'se'2rlgeufpigpe*Lr-rpusdrduzstiulis,vitlhindustilerkskeenlsougttgfte:cgp*stesespardedlnewirdcotorpcrtuitvtrgcqjisitiors ‒ ‒ overthenextsxmont-s.withenterprisefirmssettoretai-aconservativeleasingstrategyinthe shortterm,lanllortlsmusteffermrofctst-tffectivt:casetemsloatlrarctamcfilaintenams.ceRr's CfficeoccuplerSurveyconductedinJuhyshowiedthat3eljing'stenantslsdlochermerketsinchinaIn ternsotdernendforHexiblcworkpliccsa"stIcascs.Lundlordsasadvisedtouagradcthcirhardyvrarc ndsoftwsreFaclltlesthel:tenantacrestecomprehenslvcos:ndutiltsrlvsntages Sv.I.M.:C:FP?IWA**.G*2.* a ti: 1 60 intalirdrx :rad:Hrntalidax (fticc 14,0005q.m, 0.6%- rIGJRC2OrlitSupplrandDemand bo-lsdlr0+ Nawleasingdemandpicksupslightly u3s 215; NenewofficeatexckwaaaddedlInca2022.F-aje:tdelaysensuredtotalnevsuppshyInthefrstthree quartersre=c"sd180.000sq.m.,thelosv=sttotalforthesamepericdofanyearsince2c15. 500 03 2113 20: 100 152 15 17% Wi:h:usinussactivitviebouricinigjaricciriolovcas1eturniristothiccHicc,thepuriccsawapi:kupir bochofficeattanidenceanclegsingvolume,oushingupnewleasesby28%q-o-q.Ilh=CBD,Lizeand E2Rsubnarketswererelativey=ctive,accountingfor54%oftotalnewleasescombinecanc=ll witnesslngthecompletkonofseverallarge-sizetransaetlons:shijingshanalsnsavistearlyfkwof ctivityinvolvingupgradinga*dexpansonbydomestictenants.Financewastrtopclemand2ngine overInesuailer,incraosingjilsshurcofnuwloos.o31%,onridsoliuexogngicnfiomsucurilics,fundls Frcinhesectortell25%qqasri'risrsrnairiedcauticus.C:ivenbyupgradingariclexp=nsic"tron fomna*dapprelcompa*ite,censumerproduetsfimsvioh:thinlmjorthemanglslrvor.Donancl frc-mctherindustriesasstable. Irousen, 6% NeS.ipply varancyHate(HHS TIGJRC3:OrticeRental1dg: _.2 3x<:1 Cityvick:netabsoiption1erlairnccneglativeatl4,OQCsq.irl,a:soniecc'npariies,includiriga'ew leedingInternet-beaedfrms,conti~usdtoccrsolidategnds.rrencerspace,mginlyInzccand 200 80 Wang,jing.C-adeEnetatsorptionstccc=tG1,oocsq.m.amidscmevolatilityinthencverrento*tenants,u:t*GradeAmrktsaw*thse'ptonncraseto47,Cooj.m.Overallvacnyedgeo Averageacerentsdeclin=c0.6qoqonalikeforlikeasistcRMB3C8.sparsq.m.3ermont-. Rentsinwia"gfujingandtechhubarsassuchasZGC,WarigjirigariclDlviripi:tellbyover1%. up0.4ppsq-9-qto'8.1%. Rentscontinuetofall,writhtechhubsleadingthedecline 170 Rctail TIGl=:NewSupenSalaoteLeeslngTrareclo1s -0.8-0-9 267.400sg.m. va:ac AddnsMon Submarket Gfa(sq.m.) Landlord I1zeskydall J2LK: X7,11 HHI; "EC.CO -cngIG' YirgFallriANs JL: Ihiniwarsoas NewCpeninge Sector Submarket I'rrcd Froparty KH (:hlJ ritren Nex:nera'rvehicle CspitsMAL. waralirg enroEJnz r& I<rgfurPariarlisk: alkViahuzrig otr' AOLDWALL Fas1lcn IekoUSout1 enltun EuIF:-17 ucds GtlrdlPax:fir:Ceirhiref JEPIK CALABOSM craovangFopeo1Gna Gri:lCarie Cof't:Tex! imB +0,4pp( Nawdacentralisedmallsdriveconsumptionupgrading Threediecentrallsedmalls:-Liz5kyMallInFengtalandLongforParadis:WalksndYinglalLUniFANs inED,Aopen=cthisquarter,addingacombined335,5o0sq,T,C=AtcE=jing'sretailma'ket.Allmalls alecpxutdtcxcrk:ccddovclccisaricuchicvcdhighoccupacvuporcoiripletiorTunlanits incluccltheregionalfirststcrsso"severalfan1o_sretaIb*gndsa*dI&rstsilers,9ndanchcrtenents suchas7FR三SHP_US,YcrisgHuiSuperstor,INAXECNAntsrneticrlalCineplex.=ndnl:Pcokstors Pent-updemandreleases:landlordsacceleraterenovationworks 7.?+,1.3.N?--r.,3:I**: F