Shanghai's Grade A office market remained stable in the first quarter of this year despite abundant new supply, real estate service provider JLL said in a report released yesterday.
Offices in the decentralized market again outperformed those in the existing central business districts, JLL added.
Rents in CBD areas were flat while those in the decentralized market edged up 1 percent quarter on quarter, driven by emerging CBDs in the clusters around the railway station and the North Bund.
“With net absorption exceeding 162,000 square meters, the decentralized market continued to see impressive leasing deals in the first three months of this year,” said Anny Zhang, head of markets for JLL Shanghai.
“Notable deals included PepsiCo's 7,000 square meters' lease in Gopher Center and Metlife's 3,500 square meters' lease in Landmark Center,” she added.
A record 528,000 square meters of Grade A office space spanning four projects, including Shanghai Tower in Lujiazui, were completed in the CBD areas in the January-March period while seven projects with a total gross floor area of 442,000 square meters entered the decentralized market during the same period, pushing vacancy rates higher across the city.