New | Shanghai office boom continues as foreign and domestic companies take up record office space
Strong demand for prime offices in the Pudong and Puxi central business districts
Shanghai’s office leasing net absorption hit a record high last year as demand from both domestic and foreign companies rose.
The strong demand resulted in rental growth in both the Pudong and Puxi central business districts.
But as a lot of supply will be coming online rentals are not expected to see significant growth in the city this year, according to property consultants.
Domestic as well as multinational companies in the technology, retail, professional services and financial services sectors actively sought office expansion opportunities in both the Pudong and Puxi central business districts last year, according to Anthony Couse, managing director for JLL East China.
Overall net absorption in 2015 reached a historical high of about 1.45 million square metres, almost doubling the 2014 figure
Overall net absorption in 2015 reached a historical high of about 1.45 million square metres, almost doubling the 2014 figure.
“Demand continued to be strong towards the year-end, and we have witnessed strong leasing performance in a number of recently completed projects in Pudong as well as core locations in Puxi,” said James Allan, Head of Markets for JLL Shanghai.