Despite abundant supply, Shanghai office rents are expected to rise 5 to 10 per cent this year as foreign companies set up shop in the city. According to official mainland numbers and DTZ Debenham, foreign direct investment in Shanghai was US$5.3 billion last year, up from $4.3 billion a year earlier. DTZ Debenham executive director Edward Cheung said the rise in office rents would depend on vacancy rates in popular business districts. Overall vacancy rates for grade A office space fell 0.4 percentage point to 11.5 per cent last year. 'While overall vacancy levels are expected to edge higher due to a surge in new supply, availability of prime offices in Puxi will remain tight,' Mr Cheung said.