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Rents of Grade-A office space up 1.4% in 2Q
By Cherry Cao |
July 11, 2012, Wednesday
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GRADE-A office rents registered a mild increase in Shanghai in the second quarter as demand remained weak, a research report said today.
The average rent of Grade-A offices in Shanghai edged up 9 yuan (US$1.42) per square meter per day in the April-June period, a quarterly gain of 1.4 percent, said the report by global real estate services provider Jones Lang LaSalle.
"Tenant leasing decisions continued to be impacted by economic uncertainty, leading to subdued demand in the overall market," said Anthony Couse, managing director of Jones Lang LaSalle Shanghai. "Rental growth was mainly driven by the Pudong submarket, where office supply is constricted and demand from domestic tenants, particularly the financial sector, continued to improve."
In Pudong, rents rose 1.9 percent from the previous quarter to 8.7 yuan per square meter per day but rents in the Puxi side edged up only 0.9 percent to 9.2 yuan because new leasing activity was mainly concentrated on upcoming projects.
For the second half, rents in Puxi will remain under pressure from new supply and the large volume of relatively inexpensive, decentralized office space while Pudong rents will continue to grow at a moderate pace as space in Lujiazui remains very tight, the company predicted.
The average rent of Grade-A offices in Shanghai edged up 9 yuan (US$1.42) per square meter per day in the April-June period, a quarterly gain of 1.4 percent, said the report by global real estate services provider Jones Lang LaSalle.
"Tenant leasing decisions continued to be impacted by economic uncertainty, leading to subdued demand in the overall market," said Anthony Couse, managing director of Jones Lang LaSalle Shanghai. "Rental growth was mainly driven by the Pudong submarket, where office supply is constricted and demand from domestic tenants, particularly the financial sector, continued to improve."
In Pudong, rents rose 1.9 percent from the previous quarter to 8.7 yuan per square meter per day but rents in the Puxi side edged up only 0.9 percent to 9.2 yuan because new leasing activity was mainly concentrated on upcoming projects.
For the second half, rents in Puxi will remain under pressure from new supply and the large volume of relatively inexpensive, decentralized office space while Pudong rents will continue to grow at a moderate pace as space in Lujiazui remains very tight, the company predicted.
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