Shanghai's Office Vacancy Rate Rose in 2019, But Stayed Below Big City Average
Xu Wei
DATE:  Jan 08 2020
/ SOURCE:  yicai
Shanghai's Office Vacancy Rate Rose in 2019, But Stayed Below Big City Average Shanghai's Office Vacancy Rate Rose in 2019, But Stayed Below Big City Average

(Yicai Global) Jan. 8 -- Shanghai's commercial vacancy rate increased 4.2 percentage points annually in 2019 as supplies increased, but still managed to remain below the average among China's main cities, according to data from American commercial real estate services giant CBRE Group.

The eastern metropolis had an office vacancy rate of 19.4 percent, CBRE said in a report yesterday. The average among 17 major cities on the Chinese mainland was 21.7 percent, slightly higher than in 2018, with the higher rates coming in emerging business districts, cities in the Midwest and second-tier cities in the north.

Shanghai added 990,000 square meters of commercial space in 2019, but the nation's economic slowdown led to weakened demand and pre-leasing and citywide rents fell 1.7 percent from a year earlier, compared with a 1.8 percent decline in big cities.

The national vacancy rate will likely peak next year, CBRE predicts, saying itshould begin to decline from then on as new supplies slow down and demand recovers. Rental rates will likely decline beyond this point but fall at a much slower rate, it added.

Ten of the 17 cities analyzed, including Beijing, Shanghai and several second-tier cities, may see a slight improvement in retail space rental rates, the report added.

Editor: James Boynton

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Keywords:   Shanghai,CBRE Group,Office Vacancy Rate