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Shanghai Office Quarterly Report Q4 2022

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03

Vacancy rate dropped as demand picked up

Insights & recommendations

In Q4 2022, Shanghai office market demand rebounded steadily, with net absorption reaching 166,000 sqm, up 37.7% QOQ. A few new projects entering the market this quarter, vacancies declined and rents remained at historic lows. Since optimizing the COVID-19 response has been announced, it is expected that the market still needs a quarterly adjustment period, and we remains cautiously optimistic about the market in H1 2023. Therefore, Colliers recommends that:

 

The large amount of new supply coming to market in 2023 will put pressure on the leasing market and rental performance. We recommend tenants take this opportunity to review their business strategies to lock in longer leases and negotiate favorable rental packages.
With the release of epidemic situation, it will greatly boost the confidence of all parties, and the Shanghai office market is expected to gradually move towards full recovery.

Shanghai Office Quarterly Report Q4 2022

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