Companies drawn to Shanghai’s emerging districts amid cheaper rents, top class office space

Shanghai, China’s financial capital, is set to displace Hong Kong as Greater China’s biggest office market in 2020

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The Shanghai Tower, (centre) and other buildings stand in the Lujiazui financial district, in Shanghai. Photo: Bloomberg

Published: 12:17pm, 19 May 2018Updated: 12:16pm, 19 May 2018

Multinationals and state-owned companies are relocating from established central business districts in Shanghai to up and coming areas attracted by cheaper rents and increasing supply of grade A office space.

Amid the expansion of the city’s subway system, other non-CBD areas have seen a surge in the construction of office buildings, offering companies an alternative to established districts such as Lujiazui, Nanjing Road and People’s Square.

Shanghai Railway Station, the North Bund and Qiantan are among the emerging non-CBD areas that are starting to draw big tenants.

Jinmao Tower, (from left) Shanghai World Financial Center, and Shanghai Tower in Shanghai’s Lujiazui financial district. The city is set to become Greater China’s biggest office market by 2020. Photo: Simon Song

Besides, the mainland’s most developed metropolis is set to overtake Hong Kong as Greater China’s biggest office market in 2020.

By 2020, the city’s top grade office market will have a total supply of 11 million square metres (118.4 million sq ft), up from 6.6 million square metres in 2017, according to global property services firm JLL.

Hong Kong had about 8 million square metres last year, which will rise to about 9.2 million square metres in two years’ time.