ZHA’s ‘vertical city’ office tower to start construction in Beijing

Why this matters

The commencement of construction on ZHA’s ‘vertical city’ office tower in Beijing, while geographically outside the US, offers a useful prism through which to view evolving institutional attitudes toward office development amid persistent uncertainty in the sector. For US allocators and capital providers, the project underscores a continued appetite—at least in select global markets—for large-scale, innovative office assets that aim to redefine workplace environments. This contrasts with the more cautious stance evident in many US gateway cities, where office leasing remains challenged by hybrid work trends and elevated vacancy. Institutionally, the move signals that capital is still willing to back ambitious office projects that incorporate mixed-use or urban integration elements, reflecting a broader search for resilience and differentiation in office product. It also suggests that lending conditions, while tighter in some US markets, may remain accommodative or selectively targeted toward office developments perceived as future-proof or amenity-rich. For US investors, the project’s emphasis on vertical density and city-within-a-city design may foreshadow a strategic pivot toward office assets that blend work, lifestyle, and community, a formula increasingly viewed as necessary to sustain demand and justify pricing in a recalibrated office market.

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On the RET wire

• Disclosed office deal value tracked in August 2026: $17.1B across 72 reported transactions. All Office coverage →

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