The annual rent of Shanghai office buildings stopped falling and rebounded, and the leasing demand of business parks has reached a new highFly into the homes of ordinary people
Caption: Binjiang multi-segment office rents have risen steadily. Photo courtesy of Spring and Autumn Tourism
On January 12, the “Review of Shanghai Real Estate Market in 2021 and Outlook for 2022” (hereinafter referred to as the “Report”) released by CBRE showed that the net absorption of Shanghai’s office buildings in 2021 will hit a record high, and the rent of office buildings in business parks will rise. stability.
High-quality office market: rents rebounded
In 2021, a total of 17 new projects will be launched in the Shanghai office market, with a total of 1.071 million square meters, 1.6 times the volume delivered in 2020, of which 60% will be deployed in emerging business districts, with “World Expo-Qiantan-Xuhui Riverside” as the example. The maturity of the representative Riverside core development area has accelerated evolution.
In terms of industry demand, Shanghai is embracing the digital economy era with a strong momentum. The demand for TMT (digital new media) dominated by e-commerce, social media and sub-categories such as artificial intelligence, big data and financial technology is still over 1/4 of the level. Ranked first in the year; secondly, with the introduction of Pudong’s “leading zone” policy, the financial industry, mainly financial leasing, funds, banking and insurance, has been upgraded and expanded significantly, and 70% of them are located in Pudong.
Driven by the resilient recovery of core business districts and the rejuvenation of various sectors of Binjiang, rents rebounded throughout the year, with quotations and effective rents rising by 0.7% and 1.2% respectively compared with the same period last year, leading the national level. Today, health and safety has become a long-term demand for tenants, and green buildings continue to record good rental performance, with an overall rental premium of over 20%.
Zhang Yue, Head of Consultancy and Transaction Services and Office Building Department of CBRE East China, said that in 2021, the demand for office buildings in Shanghai will show a strong recovery performance, which fully demonstrates the Shanghai market’s national leading position in the strategic layout of emerging industries and the opening of the window city to the outside world. Foreign investment attraction. In the next six months, the office market is expected to increase by about 870,000 square meters, which will be concentrated in Xuhui Binjiang, Qiantan, North Bund and Suhewan in the waterfront areas along the “One River and One River”, which will rapidly undertake the development of an international metropolis in 2022. The demand for quality improvement and transformation in the concentrated display area of energy level and core competitiveness provides ample choices of high-quality office spaces.
Business Park Office Market: Rent Growth Hits Record High
In 2021, the Shanghai business park office market recorded a total of 14 new supply deliveries, totaling 859,000 square meters, located in Zhangjiang, Jinqiao and Shibei sectors, stimulating the market to continue to release strong demand.
In terms of industry demand, the leasing demand of the TMT industry ranks first with 43%. Among them, game companies as the main demand have relocated, expanded leases and established new headquarters in Caohejing, where the industry is highly concentrated; biomedicine accounted for 23%. The ratio ranks second, of which Zhangjiang plate has undertaken more than half of the transaction area, and the industrial agglomeration effect has been further strengthened.
Comparing the performance of various sub-markets, new establishments and relocations have been upgraded to the main transaction types throughout the year. The vigorous industrial development and steady and active leasing have driven the rent levels of various sub-sectors to rise to varying degrees, driving the city’s average rent quotations to continue to climb to a monthly high. RMB 136.7 per square meter, a year-on-year increase of 3.2%, a new high since 2019.
Caption: Shanghai will have a number of high-quality business parks entering the market Photo courtesy of the interviewees
“In the next six months, Shanghai is expected to have more than 600,000 square meters of new supply. In addition to the core sectors of Zhangjiang, Caohejing and Jinqiao, there will also be high-quality projects in Qingpu, Waigaoqiao, and Songjiang.” CBRE East China Ding Zhujun, head of consulting and transaction services and business parks, predicted that with the advancement of the “14th Five-Year Plan” construction and the further creation of innovative technology industry clusters, it is expected to continue to stimulate new momentum in the market. In particular, the biomedical industry with industrialization as the main development line and the electronic information industry with integrated circuits as the core leading field will focus on conquering core technologies in the future, further expanding production and speeding up, and building Shanghai into a national industrial highland.
High-quality retail property market: All kinds of first stores gather in Shanghai
In 2021, a total of 11 high-quality projects will be listed in the Shanghai retail property market. The main projects include Raffles City on the North Bund, Taikoo Li Qiantan and Shanghai Jiuguang Center. The new supply in the whole year reached 1.255 million square meters, which has exceeded the annual average level of the peak supply period from 2016 to 2018.
The first store in Shanghai continued to lead the country, and many first stores in Asia and the whole country settled in Shanghai. The Swiss high-end handmade chocolate brand Ledra has set up shop in Huanmao, the first flagship store of couture beauty brand Valentino Beauty in mainland China has landed in Xintiandi, and the first national store of Italian fashion brand MISSONI and professional outdoor sports brand HOKA ONE ONE has settled in Jing’an Kerry Center. It is worth mentioning that in the location selection of the first store, in addition to the benchmark projects in the core business districts, new projects located in non-core business districts provide new options for location selection. For example, Ruihong Tiandi Sun Palace opened the first MUJI fresh food complex store in China, and Taikoo Li Qiantan welcomed many first stores including the first store of Frank And Oak in Asia and the first store of TOTEME in China.
Xinuo, head of the consulting and transaction services and commercial department of CBRE East China, said that in the next six months, the market is expected to usher in a new supply of 420,000 square meters, which will further improve the commercial layout of non-core sectors and create a new landmark for consumption. Comprehensively improve the city’s commercial functions and consumption environment. By the end of the “14th Five-Year Plan”, Shanghai is expected to take the lead in basically building into an international consumption center city with global influence, competitiveness and reputation.
Xinmin Evening News reporter Yang Yuhong
Editor: Qian Wenting
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