Office Portfolio Focused on Retaining Quality Tenants Sample Clauses

Office Portfolio Focused on Retaining Quality Tenants. China’s office leasing market has been facing the challenge of weakening demand and over supply in the past few years. The ongoing China-US trade war since 2019 and the COVID-19 pandemic posed new threats to the office market. As the pandemic was largely contained in China, business activities resumed gradually during H1 2021. While the global economy was still in its early stage of recovery, many corporations continued to be cost-conscious and postponed their decisions on leasing new space. At the height of the pandemic, many companies implemented “work-from-home” policies. As “work-from-home” becomes the new normal, the leasing demand for office space was inevitably affected. Xxx Xxxx XXXX’s office portfolio consists of: (i) The Tower Offices at Beijing Oriental Plaza, and (ii) The Tower at Chongqing Metropolitan Oriental Plaza. During H1 2021, NPI was RMB396 million (2020: RMB403 million). Though economic activities continued to normalize, international travel restrictions are still imposed. Domestic companies continued to be a steady source of leasing demand. Overall demand for office premises has not returned to the pre-pandemic level. Vacancy rate in the Beijing office market stayed at a relatively high level of 17.5%1 in the second quarter of 2021, exerting downward pressure on rents. Landlords have to take a much more accommodating stance in lease negotiations. INTERIM REPORT 2021 5
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