Asia Pacific Office Outlook 2024

SHANGHAI

K E Y M E S S AG E S

SUPPLY

DEMAND

RENTS

KEY OUTLOOK

 From 2024 to 2027, more new supply is expected to enter Shanghai’s Grade A office market. During this period, over 3.8 million sqm of office space will be added to the market.  2024 will be another peak

 Considering the slow

 Over 60% of new supply will be located in suburban areas in the future, which will drive growth in these non-core areas and attract more quality tenants and corporates to gather.  The rental gap between suburban and core areas is narrowing, and this trend is expected to continue in the future.

 In 2023, rents have been under pressure and have declined by about 1.5%. The annual rental growth is likely to register -1% during the next two years, weighed by a higher-than average vacancy rate. The monthly rental for Shanghai’s Grade A office

economic recovery and ongoing uncertainty internationally, the office leasing market will remain sluggish. As a result, net absorption is expected to be around 550,000 sqm in 2024.  Due to the high volume of new supply to be added in the future, a vacancy rate peak of around 22.7% is expected in 2024.  The market will remain tenant favorable and there will be more choices for tenants.

supply year as a result of projects delayed in the past.

will drop to around RMB240 per sqm.

 Of those projects to complete in 2024,

approximately twice as many projects will be completed in the city’s suburban areas as in the core areas.