For institutional fund strategies, CBD (Guomao) carries the strongest investor flag in Beijing, with prime yields around 5.6%.

  • Trophy submarket (CBD (Guomao)) carries the strongest investor flag.
  • Prime yield: 5.6%.
  • Core funds buy income; value-add buys repositioning of secondary stock.
  • Cap-rate spread between trophy and secondary has widened post-2022.

Beijing office fund strategy and flag

For institutional fund strategies, CBD (Guomao) carries the strongest investor flag in Beijing, with prime yields around 5.6%.

TL;DR

  • Trophy submarket (CBD (Guomao)) carries the strongest investor flag.
  • Prime yield: 5.6%.
  • Core funds buy income; value-add buys repositioning of secondary stock.
  • Cap-rate spread between trophy and secondary has widened post-2022.

Where core funds buy

Core capital concentrates in trophy stock with long-WAULT income. In Beijing, that's CBD (Guomao) and assets like China World Trade Center Tower III, China Zun (CITIC Tower).

Where value-add looks

Value-add capital looks at secondary Class A and convertible Class B with repositioning angle. The trophy/secondary cap-rate spread has widened post-2022, which has reopened the value-add basis for repositioning plays.

Key facts

cityBeijing
countryChina
regionAPAC
classARentLocal320 CNY/sqft/yr
classARentUsd$45/sqft/yr
vacancy18.5%
typicalLeaseYears5
typicalRentFreeMonths8
submarkets5
primeYieldPct5.6%
primeYield5.6%
trophyAnchorCBD (Guomao)

Frequently asked questions

Where do core funds buy in Beijing?
Trophy submarket — CBD (Guomao) — and the most defensible long-WAULT assets within it.

Editorial provenance

Reviewed by Kenji Watanabe — APAC contributing editor. Last updated 2026-04-15. See our methodology and editorial standards.

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