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2021 Shanghai office rents rebound for the first time in five years Business. Park rental demand hits six-year high

2022-01-20

2021 Shanghai office rents rebound for the first time in five years Business. Park rental demand hits six-year high

(Credit: Leju)

      In 2021, the Shanghai Business Park office market recorded 14 new supply deliveries, totalling 859,000 square meters, located in Zhangjiang, Jinqiao and Shibei sectors. A large number of high-quality supplies in multiple sectors carry the constantly improving level of the real economy and gradually strengthening scientific and technological innovation, stimulating the market to continue to release strong demand. The annual net absorption reached 1.084 million, which was the first time that it exceeded one million since 2015. The market vacancy rate for the whole year decreased by 3.4 percentage points to 14.5%.

  In terms of industry demand, the leasing demand of TMT(telecommunications, media and technology) industry ranks first with 43%. As the main demand, game enterprises have relocated, expanded leases and set up new headquarters in Caohejing, which has strong industry concentration. E-commerce related enterprises choose to complete the upgrade and replacement in the city north and airport; Internet, communications tenants also recorded a certain area of transactions. Biomedicine ranked second with 23%, among which Zhangjiang plate undertook more than half of the transaction area, the policy-oriented effect was significant, and the industrial agglomeration effect was further strengthened; Thanks to the delivery of the biopharmaceutical business park, the Pujiang sector also shows strong attraction. The development of semiconductor, electronic equipment and chip enterprises promoted the transaction proportion of electronic products tenants to 13%, a significant increase over the previous year, concentrated in Zhangjiang plate, Jinqiao, Pujiang plate have a large area of transactions.