Figure 7: Shanghai Business Parks Vacancy Rate
(2008 to 2014)
Source: Colliers International
5. Rental
Currently, new supply of higher than average quality premises
is supporting general market rental increases with average
leasing rates for space in Shanghai’s business parks reaching
approximately RMB 3.6 per square metre per day by the end
of 2014. Rental growth has decelerated since 2012 given the
increasing amount of new supply and correspondingly stronger
competition; the compound annual rental growth rate over the
past three years (2011 to 2014) is around 5 percent.
Figure 8: Shanghai Business Parks Average Rental
and Rental Growth (2008 to 2014)
Source: Colliers International
In terms of submarket, LJZ Software Park records the highest
rentals, followed by Yangpu and Caohejing areas. Currently
the lowest rental levels are seen in Caohejing Pujiang.
Map 2: Shanghai Business Parks Average Rental by Area
(2H2014)
Unit: RMB per sqm per day rental of last quarter/RMB psm per day rental of
this quarter (%) refers to vacancy rate
Source: Colliers International Shanghai Research
6. Gross Yield
Figure 9: Shanghai Business Parks Gross Yield
(2008 to 2014)
Source: Colliers International
The gross yields in business parks generally ranged between 6
percent and 9 percent as of the end of 2014, approximately 1
to 2 percentage points higher than downtown in some cases;
however yields vary dramatically on a location and project basis.
831
448
186
661
1,048
258
805
505
566 576
674
472
957
Thousand square metres
RMB per square metre per day
New Supply
Rental
Demand
1,200
4.00
15%
12%
8%
10%
6%
4%
2%
0%
3.00
5%
1.50
-10%
0.50
3.50
10%
2.00
-5%
2.50
0%
1.00
0.00
-15%
30%
0%
10%
20%
5%
15%
25%
1,000
800
600
400
200
0
2008
2010
2012
2009
2011
2013
2014
26.5%
10.0%
6.1%
-12.1%
7.4%
2.4%
3.7% 2.6%
26.6% 25.0% 16.0% 14.6% 13.1% 14.8%
Vacancy
Rental Growth
2008
2010
2012
2009
2011
2013
2014
3.30
2.90
2.97
3.15
3.38
3.51
3.60
2008
2010
2012
2009
2011
2013
2014
8.4%
8.1%
6.7%
5.8%
6.4% 6.6%
9.4% 9.6%
6.4%
5.8%
6.0%
8.5%
6.9%
6.3%
6.2%
5.7%
6.5%
5.7%
3.6%
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