Short-term fluctuations do not affect long-term positive sentiment
Insights & recommendations
In Q1 2022, leasing activities in Shanghai business parks were affected by the recurrence of Covid and the temporary lockdown. With the effective control of Covid, we expect leasing activities to resume rapidly in Q2 2022. Colliers remains optimistic about the market, expecting that the robust demand from rapid-growing sectors has only been delayed and rents maintain an upward momentum from 2022 to 2026. We recommend tenants renewing their leases or considering relocation or expansion to conduct site selection and negotiation as soon as possible, as we expect the competition will be escalated right after the effective control of Covid, especially in some core submarkets with low vacancy rates. Landlords should increase communication with tenants especially SMEs and take active measures to ensure tenant retention despite the current market situation.