Shanghai Figures Q2 2023

Occupier demand continues to pick up;

investment deals dominated by new economy assets

Office

Four new projects with a combined 373,000 sq. m. were completed in Q2 2023. Demand gradually picked up over the quarter, with net absorption reaching 180,491 sq. m. Overall vacancy rose by 0.7% q-o-q to 18.7% as a result of new completions. Finance, TMT and business services drove demand.

Retail

No new shopping malls were completed this quarter. Citywide vacancy decreased by 0.1-pps q-o-q to 7.6%, with net absorption logging 18,678 sq. m.. The gradual recovery of secondary locations ensured overall average G/F shopping mall rents stabilised. Demand continued to pick up, with the F&B, fashion and accessories & jewellery sectors especially active.

Logistics

Two projects providing a combined 252,223 sq. m. of space came on stream in Q2 2023. Steady leasing activity in Jinshan, Qingpu and Songjiang pushed up net absorption to 148,918 sq. m.. 3PLs continued to dominate leasing, while e-commerce demand rebounded.

Business Park

Jinke Office Park in Jinqiao, Zhaoxiang Business Park B-N and Business Park C in Qingpu were completed this quarter, bringing 184,407 sq. m. of new supply. Net absorption fell 49% q-o-q to 26,774 sq. m. Demand was driven by industrial manufacturing, TMT, and third-party space providers.

Investment

A total of 26 transactions worth a combined RMB 14.03 billion were completed in Q2 2023, a decline of 24.9% q-o-q. This brought the half-yearly total to RMB 32.72 billion, a fall of 23.5% y-o-y. The market continued to be dominated by investment-oriented transactions, shares of which registered growth from last quarter.