Shanghai Figures Q3 2022

Occupier recovery gains momentum, supported by improving business sentiment

Office

Five new buildings providing a total of 520,000 sq. m. of new office space were completed in Q3 2022. Demand was driven by the consumer products manufacturing and finance sector. Overall net absorption rose to 175,266 sq. m., an increase of 275.6% q-o-q but a decline of 61.% y-o-y.  Overall vacancy increased by 1.6 pps to 17%.

Retail

JC Plaza in Nanjing Road West was the only new shopping mall to be completed this quarter, providing 19,691 sq. m. of new retail space. F&B dominated leasing demand while robust expansion was witnessed from fashion retailers. The issuance of consumption vouchers during the quarter helped boost consumption and support the market recovery.

Logistics

No new supply was added in Q3 2022. Net absorption totaled 61,373 sq. m. 3PLs dominated leasing activity, followed by retailers and manufacturers. Overall vacancy fell slightly to 8.1%.

Business Park

One new project was launched this quarter while take-up totaled 73,050 sq. m. Activity was led by consumer product manufacturing firms, which accounted for 45% of demand. Rents were flat.

Investment

A total of 13 investment transactions worth a combined RMB 20.13 billion were completed in Q3 2022, representing falls of 0.1% q-o-q and 11.8% y-o-y. Domestic end-users dominated transactions over the quarter. Offices were the most sought-after sector, accounting for 54% of investment volume.