On March 26, Ucommune announced that the company leased Shanghai Konnect Building, a 12-stoery office building, with a total area of over 10,000 square metres. Per published announcement, three of the floors would be tailored to serve large and medium-sized enterprises, while the remaining floors would be transformed into shared office space. The property, originally known as Longrun Hotel, is located in South Yunnan Road, Huangpu District, Shanghai. In 2015, Kailong Group acquired the building and transformed it into a brand new 12-story office building. Today, the property is known as Konnect Building.
Colliers International Valuation and Advisory Services commented:
Since 2021, the leasing activities in Shanghai's office market has been active, largely due to the rising demand from rapidly expanding industries such as finance, technology, professional services, and online retail. The demand from tech industry is particularly robust. Since H2 2020, the net absorption of Shanghai's prime office leasing market has rebounded, further slowing down the citywide rental decline caused by the pandemic. The recovery of the office leasing market might boost the investor’s confidence in pursuit of prime assets.