Leasing demand was dominated by cost-driven relocations, with new expansion momentum notably weak

• As consumption recovery remained muted and corporates stepped up cost control, tenants’ appetite for new leases and expansions stayed weak. Leasing activity was mainly driven by cost-driven relocations, led by 3PL, retail and pharmaceutical occupiers.
• Despite the overall weakness, Pinggu attracted some large-scale commitments from top-tier occupiers thanks to more competitive rents and high-specification warehousing. By contrast, traditional submarkets continued to face pressure to destock.

New market entrants contribute to heightened competition in 2025

• New supply totalled 117,700 sqm in Q4 2025, increasing total stock by 17.5% y-o-y. Two facilities, including COOP-GLP Mafang (Beijing) Logistics Park and Logos Park Pinggu Phase II in the Pinggu area, entered the market.
• The vacancy rate in Beijing stood at 31.4% in Q4 2025, up 1.3 ppts q-o-q and 13.2 ppts y-o-y. In 2025, the market saw the entry of five projects, all within the Pinggu submarket.

Rents remained under downward pressure throughout the year, narrowing price gaps between submarkets

• The Beijing logistics market recorded a 4.3% q-o-q decline in rents in Q4 2025, with a y-o-y decline of 16.4%. Landlords in core submarkets widely offered attractive discounts and more flexible commercial terms to maintain occupancy rates.
• Investors remained cautious due to the continuous downward trend in the logistics market. Market yields decompressed steadily over the quarter.

Outlook: Rent declines to continue in 2026

• Rents are expected to fall by 13% in 2026. With rents continuing to fall and the Pinggu project delivering high quality space at attractive pricing, some tenants previously eyeing Tianjin or Langfang are showing signs of returning.
• Landlords are also adopting more effective strategies, such as phased launches and property upgrades, which are expected to help underpin market recovery over time.