Shanghai Figures Q1 2024

Occupier markets experience traditionally quiet period; investment outlook brightens

Office

Four new office buildings providing a total of 266,136 sq. m. of space were completed this quarter. Consumer products manufacturing (automotive) was the main driver of leasing demand, followed by TMT (Internet services and e-commerce) and finance (other financial services and insurance). The citywide vacancy rate rose further due to increased supply and weaker demand, edging up 1.1 pps. q-o-q to 20.9%.

Retail

No new shopping malls were completed this quarter. Citywide vacancy fell by 0.2 pps. q-o-q to 7.9%, with net absorption logging 22,325 sq. m.. F&B dominated leasing activity while fashion brands remained active. Several new-to-market and  flagship stores of international brands opened stores this quarter.

Logistics

Two projects totalling 252,797 sq. m. of space came on stream in Qingpu and Songjiang. Demand mainly came from 3PLs, with container logistics providers expanding their domestic and foreign business. Manufacturing demand was driven by the pharmaceutical sector.

Business Park

Four new assets providing 259,599 sq. m. were added in Q1 2024. Net absorption totalled 47,202 sq. m., pushing up the vacancy rate. Demand was led by the industrial manufacturing, consumer product manufacturing and pharmaceutical & life science sectors. Relocation remained a key trend.

Investment

A total of 19 investment deals worth a combined RMB 14.41 billion were completed in Q1 2024, a decline of 36.6% q-o-q. 58% of transactions involved commercial office buildings. Properties located along the riverside remained keenly sought after by end-users, while real estate funds displayed a stronger appetite for acquisitions, particularly for multifamily assets with conversion potential.