Business park vacancies to stay low

Updated 2017-07-12 09:23:38 Shanghai Daily

About 2.5 million square meters of business parks will be developed in Shanghai between 2017 and 2021, global property advisor Colliers International said in a report released yesterday.

More than half the new space will be in Zhangjiang in Pudong New Area and Caohejing in Minhang District.

Despite abundant supply over the coming five years, vacancy rates at business parks should remain rather low while rents will continue to rise as demand remains robust, Colliers said.

"Business parks are attractive for tenants as the average rent is 61 percent lower than that of Grade A offices in the CBD and 40 percent cheaper than decentralized Grade A offices as of 2016," said Michael Wu, senior director of office services for Colliers' East China operations. "Government incentives will further enhance cost savings for tenants."

Internet and IT companies are the largest tenants of business parks in Shanghai, accounting for 35 percent of all leases, Colliers said, based on data for the year through March. They are followed by manufacturers, at 22-percent, and finance, real estate and energy enterprises, each about 9 percent. Thirty-two percent of leasing deals are in Zhangjiang and 24 percent in Jinqiao.

The local government's call to develop Shanghai into a science and innovation center and a financial hub, as well as strong demand will keep vacancy rates at business parks rather low in the next 3-5 years, Colliers said.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58August 24 2017 09:17:45

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16August 24 2017 09:17:45

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18August 24 2017 09:17:45

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

Most Watched

News:
China World Business Sports Showbiz Audio
Video:
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
Photos:
China World Fun Travel Entertainment Sports
Travel:
Beijing Shanghai Guangzhou
Lifestyle:
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords