Shanghai Figures Q4 2024

Falling rents highlight logistics supply-demand imbalance; number of investment transactions sets new annual record

Office

This quarter saw the completion of two new office buildings providing a combined 155,340 sq. m. of space. The finance sector, led by other financial services, insurance firms and trusts, continued to take the lead, followed by TMT and consumer product manufacturing. Net absorption reached just 5,172 sq. m. due to a steady flow of deals involving downsizing and lease terminations, pushing up vacancy to 22.1%.

Retail

Park Avenue Central (PAC) opened in Q4 2024, providing approximately 43,000 sq. m. Net absorption totalled 38,000 sq. m. and vacancy was stable at 8.2%. F&B remained the key demand driver, while several apparel brands opened their first stores in the city, boosting the number of new leases.

Logistics

Three new projects providing 330,000 sq. m. were added in the southwest this quarter. Demand shrank by 15,000 sq. m. as neighbouring cities offered lower rents to attract new tenants. Vacancy climbed to 28.6% while the rental decline widened by 3.5% q-o-q to RMB 43.8 per sq. m. per month.

Business Park

The completion of Jiding Tiandi, Science Gate (West Tower), and 899 Halei Road provided 328,068 sq. m. of new stock this quarter. Net absorption reached 43,935 sq. m.. New leasing demand was driven mainly by TMT, consumer products manufacturing and life science firms.

Investment

A total of 32 investment transactions worth a combined RMB 9.94 billion were completed in Q4 2024. Office buildings remained the most traded asset type, contributing 61%, while retail’s proportion of overall investment volume increased to 22%. Local property companies were active but institutions and property funds remained cautious.