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Domestic tenants score Grade A
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DOMESTIC companies have become increasingly important tenants in Shanghai’s Grade A market over the past decade and Lujiazui is their favorite location, CBRE, the world’s largest commercial property service provider, said in a report released yesterday.
Chinese companies now account for 39.8 percent of Grade A office building tenants in the city, up 19.5 percentage points from 10 years ago. By space leased, their share amounts to 36.5 percent, up 18.9 percentage points from a decade ago, CBRE said after tracking 82 Grade A office buildings across the city for one year.
The Lujiazui CBD has been the most sought-after location for domestic companies. In 2014, 39.2 percent of over 1,300 domestic firms occupying Grade A buildings were located there, up 6.3 percentage points from 10 years ago.
The growing popularity of Lujiazui is partly due to the large number of newly established domestic financial institutions in the area and also reflects domestic companies upgrading their image by setting up offices in this location, the report said.
By tenant mix, financial companies have overtaken manufacturers to lead in Grade A office demand.
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