ASIA PACIFIC OUTLOOK 2025

SHANGHAI

DEMAND & VACANCY

The Shanghai office market is expected to remain tenant friendly in the near future, with a significant supply surplus anticipated to keep vacancy rates high. The large volume of new supply, combined with a slow growing real economy, is expected to outpace demand. While professional services, technology, media, and telecommunications (TMT), and retail & trade sectors are expected to lead leasing demand in the coming year, domestic enterprises will continue to dominate demand generation. The availability rate is projected to rise to 23.4% by the end of 2024 and reach a peak of around 27.6% by 2025, reflecting the ongoing imbalance between supply and demand.

700,000

30.0%

FORECAST

600,000

25.0%

500,000

20.0%

400,000

15.0%

300,000

10.0%

200,000

5.0%

100,000

0.0%

0

2022 2023 2024F 2025F 2026F 2027F 2028F 2029F

NET ABSORPTION (SQM) AND VACANCY RATE (%)

Net Absorption

Vacancy Rate

Cushman & Wakefield

ASIA PACIFIC OUTLOOK 2025

Source: Cushman & Wakefield