The Zhitong Finance App learned that the latest report released by JLL shows that the Shanghai office market added 98,000 square meters of supply in the first quarter, with a net absorption volume of 58,500 square meters. The city's overall vacancy rate increased 0.1 percentage points over the previous month to 23%, and the new projects attracted demand for upgrades and relocation of neighboring industrial parks and office buildings.
Against the backdrop of rising vacancy rates and slowing rental demand, the average rent for office buildings in Shanghai fell 2.4% to 6.8 yuan per square meter per day in the first quarter.
Zhang Jing, managing director of JLL East China and president of the commercial real estate department in China, said that the Shanghai office market was still favorable to tenants in the first quarter, and tenants are looking forward to more space cuts while seeking opportunities to upgrade office space. Although many landlords and tenants are still cautious about the commercial real estate market in Shanghai, commercial activity and market sentiment in Shanghai are expected to improve during the year with the help of various supportive policies.
The good news is that, driven by prices, there will be a recovery in house demand and inquiries in the office market in the next quarter, and market activity is recovering steadily, but transactions are still cautious; traditional industries such as finance, professional services, and emerging industries related to the Internet of technology and new energy are still the main sources of demand.