Shanghai business-park rents on the rise
Strong leasing demand in Shanghai’s business-park market during second quarter 2017 drove rents up an average 0.5 percent quarter-on-quarter (or 7.3 percent year-over-year) to 0.38 yuan ($0.06) per square foot per day, according to a report from Colliers International. Landlords’ rental adjustments in Shanghai’s mature submarkets — the lion’s share of the overall business-park market — primarily were responsible for rental increases during the second quarter.
According to the report, China’s telecommunications, software and IT services sectors grew 21.0 percent in first half 2017, which bodes well for the business-park sector. With continued demand from high-tech industries — particularly IT-related firms — the rental outlook for business-park landlords appears strong; Colliers International anticipates a 2.0 percent rise in a