Shanghai Figures Q3 2023

Office

This quarter saw the completion of seven projects providing a combined 368,060 sq. m. of new office space. Leasing momentum slowed from the previous quarter, with net absorption falling 35.4% q-o-q to 116,669 sq. m.. Overall vacancy rose by 1.0% q-o-q to 19.7% while the vacancy rate in the core CBD increased by 0.7% to 11.3 %.

Retail

Four malls in non-prime submarkets came on stream in Q3 2023, providing a combined 228,482 sq. m. of new space. F&B continued to dominate demand, accounting for 47% of leasing volume. Fashion comprised 24%, with the women’s wear, sports and multi-brand boutique segments especially active. The period also saw high-end new-to-market brands continue to establish a presence in Shanghai.

Logistics

Three projects providing a combined 110,798 sq. m. were delivered in the Jinshan and Songjiang submarkets this quarter. Stronger leasing momentum pushed up net absorption by 45% y-o-y to 89,147 sq. m.. 3PL demand remained upbeat, driven by consumer products manufacturing.

Business Park

Three new projects were completed this quarter. Demand showed a recovery trend, with net absorption totalling 108,000 sq. m.. Solid relocation demand was observed from emerging industries.

Investment

A total of 33 investment transactions worth a combined RMB 23.59 billion were completed in Q3 2023, a rise of 78.4% q-o-q and 17.2% y-o-y. Offices accounted for 58% of investment volume, with most properties purchased by end-users. Investment demand was observed across all property classes, with several transactions concluded for hotels and multifamily assets.