Shanghai’s office market demand rebounded, and the net absorption area in the third quarter tripled from the previous month

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Reporter | Wang Tingting

Shanghai’s office market demand showed an upward trend in the third quarter of this year.

According to data released by Cushman & Wakefield’s research department recently, the net absorption area of ​​Grade A office buildings in Shanghai was 237,000 square meters in the third quarter of this year, an increase of 208.3% month-on-month. showing an upward trend.

The good performance of Shanghai’s office market in the third quarter was mainly due to the increase in transactions driven by the entry of new projects. For example, the central area of ​​Xuhui, Suhewan and Qiantan all have key projects in the market in the third quarter, with a total new construction area of ​​277,000 square meters. “China Resources Suhewan Center” in the Hewan Plate and “Foreshore International Plaza” in the Qiantan Plate.

Office rental prices showed a slight downward trend amid increasing supply.

Data from Cushman & Wakefield showed that the average rent of Grade A office buildings in Shanghai in the third quarter of this year was 8.16 yuan / square meter / day, down 0.37% from the second quarter.

From the perspective of the industry distribution of office leasing transactions, in the first three quarters of this year, the three main industries of professional services, finance and electronic information technology remained unchanged, and trade manufacturing and biomedicine ranked fourth and fifth.

Wei Chaoying, President of Cushman & Wakefield’s China Project and Corporate Services Department, said that, judging from the transaction data in the third quarter, the market is gradually recovering, and more open talent policies and economic development measures provide guarantees for further economic recovery, and the market outlook will continue this trend.

Supported by a number of favorable policies, the number of newly established enterprises in Shanghai increased in the third quarter, and the information software, manufacturing and financial services industries performed prominently, of which the financial services industry increased by 189% year-on-year.

In terms of large-scale transactions, Shanghai recorded 14 transactions in the third quarter, with a total transaction value of 15.3 billion yuan.

In terms of property types, the proportion of office product turnover remained at over 60%, with a total turnover of 9.32 billion yuan. Among them, there are many high-value transactions such as Kaisa Financial Center and Junkang Financial Plaza, with a single transaction exceeding 2 billion yuan.

In addition, industrial projects ranked second with 20% of the turnover. Investors are cautious about commercial projects, which account for about 15% of the transaction value.

From the perspective of buyer types, the proportion of investment-type buyers’ transactions has increased significantly, from 42% in the first half of the year to 79% in the third quarter; the transaction value of self-use buyers accounted for 21%, “mainly due to self-use buyers’ transactions. The average amount is relatively small.”

“It is worth noting that logistics real estate has been a hot topic in recent years and has attracted much attention from investors.” Su Zhiyuan, managing director of the Industrial Real Estate Department of Cushman & Wakefield China, said that the total domestic high-end logistics and warehousing market has reached nearly 95 million square meters. It is expected that the total amount of high-end logistics real estate will exceed 100 million square meters by the end of this year.

Among them, the logistics markets in Jiangsu, Guangdong and Shanghai have performed well and have strong demand. In the second quarter of this year, the stock ranked the top three, and the overall supply in the future will be large, and the pressure on lease is small.

From the perspective of the national market, East China is the largest high-standard warehouse market, with a total volume of 34.28 million square meters, accounting for 36% of the total stock. Among them, the stock areas of Shanghai, Zhejiang and Anhui provinces are 9.45 million, 8.5 million and 1.71 million square meters respectively. Jiangsu Province stands out, with a stock of nearly 15 million square meters in the domestic high-end logistics market.

As for the rental level, in the third quarter, East China edged down by 0.28% to 37.9 yuan/square meter/month. However, rents in Jiangsu still showed an upward trend, while rents in Shanghai, Zhejiang and Anhui declined slightly.

Data from Cushman & Wakefield showed that the Shanghai high-standard warehouse leasing market recovered slowly in the third quarter. The average rent dropped slightly by 0.65% month-on-month to 47.8 yuan / square meter / month, and the market vacancy rate increased by 4.98% month-on-month to 10.6%.

On the whole, the logistics real estate in East China is stable, the demand for cold chain is high, the demand for Class C warehouses is rising and the supply is showing an increasing trend.

Su Zhiyuan believes that, affected by the peak season of e-commerce promotion in the fourth quarter, it is expected that the overall high-standard warehouse logistics market demand in East China will increase in the short term, and the vacancy rate is expected to decrease.