INDEPENDENT MARKET STUDY (SHANGHAI & BEIJING)
By Colliers International Property Consultants (Shanghai) Co. Ltd.
New supply in Shanghai’s business park market reached a
three year high in 2011 when approximately 957,000 square
metres of total gross floor area was launched. This represented
a 19 percent increase over 2010. New supply in 2012 brought
the total stock of Shanghai’s business park market to
approximately 5,687,000 square metres. In 2013, total stock
reached approximately 6,253,000 square metres. A total of
674,000 square metres of new supply entered the market
during 2014, with the total stock reaching approximately
6,927,589 square metres at the end of the year.
Figure 4: Shanghai Business Parks Existing Stock
and New Supply (Q1 2011 to 2014)
Source: Colliers International
Shanghai’s new supply of business park premises is expected
to increase significantly over the next three years, to total
almost 3 million square metres of new space in the major
business parks by 2017. Supply will spike in 2015, as a total of
1,389,273 square metres is scheduled to launch.
Figure 5: Shanghai Business Parks Future Supply
by Submarket (2015 to 2017)
Source: Colliers International
3. Demand
Demand in the last quarter of 2014 was particularly strong,
with approximately 262,843 square metres being absorbed
by the market. Occupiers from medical, financial, IT and high-
tech manufacturing sectors were particularly active during the
second part of the year. Caohejing registered the largest net
absorption among all submarkets at 77,286 square metres,
but large scale deals were also seen in Jinqiao and Zhangjiang.
Demand for business parks premises has consistently been
significantly higher than that seen in the CBD, supported by
large scale deals, potentially with Build to Suit transactions
that quickly drive up the occupancy rates, example being Nike
in Yangpu (55,000 square metres). Even with a number of
large, high quality new properties coming on line, demand
appears to have grown.
The overall demand for 2014 was 472,264 square metres, a
decrease of approximately 18 percent from 2013.
Figure 6: Shanghai Business Parks Supply and Demand
(2008 to 2014)
Source: Colliers International
4. Vacancy Rate
Vacancy rates in Shanghai’s business parks typically range
from 10 to 20 percent, averaging approximately 15 percent.
As a result of reduced new supply, Shanghai’s business park
average vacancy rate hit a low in the second half of 2014, but
over 600,000 square metres of supply in the second half of
the year caused vacancy to edge up. At the end of the year
the average vacancy rate stood at 14.8 percent.
2,332
831
831
448
186
661
1,048
258
805
505 506
566 576
674
472
957
5,183
505
3,163
258
5,688
566
3,421
805
6,254
674
4,226
957
6,928
1,389
8,317
810
9,127
763
12,000
10,000
8,000
6,000
4,000
2,000
0
2008
2010
2012
2009
2011
2013
2015F
2014
2016F
2017F
Thousand square metres
Thousand square metres
Existing Supply
New Supply
New Supply
Demand
1,200
1,000
800
600
400
200
0
2008
2010
2012
2009
2011
2013
2014
Zhangjiang
36.6%
Caohejing
18.2%
Yangpu
13.6%
Zhabei
8.6%
CHJ Puijiang
8.6%
Jinqiao
8.5%
Zhabei
4.8%
LIZ Software Park
1.0%
ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT 2014/15
