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Shanghai Business Park Market Update Q2 2022

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Rent are rising steadily as leasing demand gradually recovers

Insights & recommendations

Leasing activity in business parks resumed in June with lockdowns ending. In Q2 2022, net absorption increased by 5% QOQ, with vacancy edging down by 0.3pps and rent edging up by 0.4% QOQ. In H2 2022, the influx of supply is likely to push up the vacancy rate and drag down the rent growth. Colliers remains optimistic about the market in the long term, as Shanghai is ushering in policies and financial support to boost the economic recovery and is vigorously promoting tech industries. As a result, we expect business park leasing demand to trend upwards, driving up the rent. We recommend tenants with relocation and expansion plans to seize the wave of supply through 2024 and conduct site selection and negotiations before competition escalates, especially in core submarkets with lower vacancy rates. We also recommend landlords proactively pursue promising industries such as TMT and biomedical to optimize their tenant mix.


Shanghai Business Park Market Update Q2 2022

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