The shanghai rainbow bridge international exhibition
Shanghai has a high vacancy rate for writing buildings, a continuous decline in rent, a 50 per cent decline in rent for owners and a strong market advantage for service innovation。
Tsui van qing/shanghai
The vacancy rate in the shanghai writing complex is high, and rents continue to decline and are under pressure to demine。
“the vacancy rate is higher than it was in 2022, with many companies `share for small areas', and some firms unable to make it, leaving much empty.” according to the head of department of the former business writing building in shanghai, the rental price of the writing building is now falling, competition is high and the problem is common。
According to international high data, in the second quarter of 2023, the city-wide rent ratio in shanghai fell by 1. 0 per cent to 7. 53 yuan/m2/day and the city-wide writing building rent fell for the fifth consecutive quarter. Of these, the daily rent of the cbd-a write building in the core area was $8. 97/m2, a 1. 2 per cent decrease in the rent relative to the ring, a 2. 4 per cent decrease over the same period; the dbd sub-centre, a vacancy rate of 23. 9 per cent, a stock of 7. 91 million square metres, an average daily rental rate of 6. 07 per square metre, a decline for the fourth consecutive quarter; and the emerging bdb vacancy rate of 23. 6 per cent, a stock of 3. 28 million square metres, a rental rate of 5. 98/m2/day and a return to the end of 2021。
On the other hand, the shanghai office building market net absorbs 150,000 square metres, which is below the average for the past three years。
According to the cbr report, an additional 680,000 square metres were provided in the main shanghai area writing building in the second quarter, with a centralized increase in the supply to the city-wide vacancy rate of 18. 7 per cent, an increase of 1. 2 percentage points over the end of 2022 and an average daily rent of $6. 94/m2。
“in the context of the continuing downward trend in the level of rents throughout the city, there is still a lack of confidence on the part of the owners of projects and boards with a high vacancy rate, and most owners are cautious about rents and `stable rent-intensive services' are part of the current leasing strategy.”
According to liu, senior director of the east china region of dili international, financial and professional service enterprises are currently the main tenants in the office market, with a marked decline in internet enterprises and a trend towards recovery in educational and training-type enterprises. The current weak overall macroeconomic and market performance, tight corporate budgets, popular projects with lower or higher value for money, and the most efficient way for owners to increase the rental rate would be to lower prices while raising the standard of office delivery。
The vacancy rate in the writing building has risen, and the rent in multiple areas has been lowered
Shanghai-yan-ansien road pacific enterprise center
“persons are reduced by 50 per cent, 244. 7 square metres and rents of $12,000 per month.”
On 28 july, a set of 244. 7 m2 of written-in buildings at the pacific enterprise centre in yananxi road in shanghai was reduced from $26,000 per month to $12,000 per month, a reduction of more than 50 per cent, causing market concern。
“the daily rental rate per square metre was only $1. 62 per square metre, which is being pushed by more than 70 people throughout the sector.” liu shuu (alias) who is the department manager of the shell commercial writing building in charge of the building informed journalists that the average daily rent for the renovation of the pacific enterprise centre was $4-5/m2 and the market price of 244. 7 m2 was approximately $33,000/month。
According to publicly available information, the pacific central building is located on jan ansi road, changning district, shanghai, approximately 600 metres from metro 2 and jiangsu road station, line 11, and is located at the centre of the financial trade area of jipo and the grand rainbow bridge, where it intersects with the jianan zone business area, where enterprises such as asset management, property construction, the internet, education, etc. Are listed at a cost of $4. 5/m2。
The building was entered through the hall and only saw three rounded windows, northwards southwards, full of light, two compartments and one storage room. Liu stated that the owner had in good faith rented the rent several times since the lease was released in april, that the daily rent had been reduced from 4. 5 yuan/m2 to 3. 5 yuan/m2 and that the monthly rent had been reduced directly from 26,000 yuan/month to the current 12,000 yuan/month。
As to the reason for the substantial decrease in the price of the house, the owner states: “there is no rent, there is also a cost of being vacant, so that it can be rented”
According to the chief economist of the ipg china district, 244 square metres of the writing building has been reduced by more than half of the rent after being vacant for a long period of time, indicating the weak absorptive capacity of the market for commercial writing buildings. In order to increase the rental rate of the writing building, the owner may adjust the rent of the writing building in the light of changes in the industry situation, while at the same time endeavouring to screen high-quality and stable tenants and increase and stabilize the rental rate by optimizing the tenant portfolio。
In fact, the lower rent for the writing building is no longer an item in shanghai, where journalists during visits to the market for commercial writing buildings in various regions have found that the vacancy rate for the shanghai writing building has increased, that the rental price has been lowered to become widespread and that the market is facing serious problems of de-mining。
For example, in the above-mentioned sea rainbow bridge, there is a high vacancy rate and a general decline in rent in the area of huanko time, the international exhibition of the rainbow bridge and the manchuria centre。
On 27 july, journalists arrived in sector 1 of huanko time and moved up from the first floor of the office building, with a slightly fewer office space, with a number of housing gates closed, with rental information and contact numbers on the premises。
“there has been a downward adjustment in the overall price, with approximately 150 square metres of small space being better rented than large.” a real estate broker in the block, liu zheng, told journalists that the daily rental price for huanko time sector 1 was $3/m2 and the actual daily rental price was approximately $2. 6/m2。
“the market is highly competitive, there are too many real estate intermediaries connected to a customer, and there are so many housing sources that they can't see, and sometimes they can't make a deal.” with regard to the current rental of the writing building, liu qiang is shaking his head, indicating that the market is difficult and difficult。
“some businesses cannot survive, including the owners of two buildings rented in the area, and two foreign-owned enterprises are evacuated.” according to chu (alias) the manager of the international exhibition of the inner rainbow bridge, chu chinawei, who had previously been empty, was able to rent it quickly, and now has a vacancy rate of about 12 per cent, which is higher than in 2022。
In terms of rental prices, chu stated that it was lower than in 2020-2021 and at the same rate as in 2022, the ionbridge international exhibit offered a rental price of $4 per square metre per day, which actually amounted to approximately $3. 6 per square metre per day。
According to an analysis by the director general of research at the institute of concertation studies, the downward revision of commercial rents has been a trend in recent years, influenced mainly by three aspects. First, it is linked to oversupply in the commercial market, where stock exceeds 20 million square metres and the evaporation cycle exceeds 10 years. Second, there is a relationship between industry restructuring and the previous lease of high-end writing buildings, such as the finance p2p, education and training, which have all contracted. Third, it is linked to downward pressures in the global economy, with many industries depressed and rental demand falling。
Innovative service writing buildings have been highlighted
Suh vansing
High-end writing buildings have strong prices and service innovation is emerging in the market。
“as for previous days, the rental rate was 10 yuan/m2 and the occupancy rate was high, the client was stable and the rent was reduced by less.” according to the director-general of the shanghai inland industry and commerce writing building, the location of the writing building is currently more selected, with small rents falling from 100 to 200 square metres and high-end writing building prices still strong。
In the case of land-based landmark buildings, the daily rent of the shanghai central building is $15/m2, the daily rent of the worldwide financial centre is $13-14/m2, and the daily rent of the kim mo building is $11/m2, which remains stable。
“these landmark buildings, which are more demanding to enter the enterprise, prefer to be empty and price-free, with little change in the rent.” according to khun, the larger reduction is the removal of the source of the house sold to individual owners, the availability of rent, the absence of demand for the enterprise, and the lower price of the old writing building, as many enterprises had to reduce the cost and reduce the office space because the market economy was not good。
The price of landmark buildings was strong, and journalists during market visits found that the service innovation writing building had a better rental rate in the market, that rents did not rise in the plates, which was a special case in the current market, and that the long triangle digital technology innovation centre, located on the rainbow bridge, was one of the projects with a better rental rate。
Walking into the long triangle digital innovation technology centre, the star sky roof at the door, the quadrilateral valley, and many individualized areas designed to make the entire park extremely personal while emphasizing private spaces。
The park is divided into telecentres, import/export trade centres and logistics centres. Among them, the rainbow bridge international (long triangle electrician centre), operated by teh bien, designed a separate unit, two reconstructed buildings, with a more open and bright space layout, each floor carefully equipped with rest areas, negotiation areas, and public areas such as the enterprise's share-exchange conference rooms, based on a focus on entering the enterprise's private office space。
According to a sales manager of the project, the long triangle digital innovation science and technology centre is currently one of the better-released projects for the rainbow bridge, bringing together a number of internet companies and technology companies, 88 of which are in-house, 15 listed companies, 20 high-technology enterprises, with an area of 25,000 square metres and a daily rent of approximately 4. 5 yuan/m2。
In response to the current market situation in the shanghai writing building, choi gwang-hyun, director of the centre for real estate economic research of the shanghai university, stated that current economic growth expectations were weakening, that rental demand for some commercial writing buildings was declining and that supply-demand relations were beginning to find a new balance. The rent for high-quality level a and above in the centre area remained stable, with no significant increase in vacancy rates and at a reasonable level. It is proposed that future office buildings should start with improved service performance, greater supply-side adaptability, greater integration capacity of the service industry and greater synergy and synergy between the economy and industry。
According to song, the vacancy rate in the shanghai write building is high in the city, with marked fragmentation, the financial area of the land is generally performing well, the rent level remains the highest, and there is also pressure for an increase in the vacancy rate, with some enterprises starting to move out of their offices, and the demand for out-of-area offices has increased in recent years。
With regard to future market trends in writing buildings, pa wenxi suggests that, in the light of the current domestic countercyclical macro-policies and incentives for private economic development, the basics of the writing industry in the second half of the year should be expected to improve, depending on economic recovery and the restructuring of the economy, on the one hand, and on the new supply of writing buildings in different cities and regions, on the other。
