Grade A Office Rents Under Pressure After Years of Rises

China's grade A office rent is under pressure this year because of its already high base, weakening demand and rising supply in some cities, industry analysts said.

Beijing grade A office rents edged downward for the first time in three years, as demand slowed. The decline follows rises for more than three years, according to a report by Jones Lang LaSalle (JLL).

Rents in the overall market edged down 2 percent quarter-on-quarter in the first quarter to 337 yuan (US$54) per square meter per month, the first decline since the third quarter of 2009, the report showed.

The downtick was more pronounced in the central business district (down 3.7 percent quarter-on-quarter), where resistance to high rents was more acute, although mild rental growth remained in place in submarkets where upcoming lease expiries are less of a concern.