2025年第三季度上海写字楼市场报告

This report focuses on the Grade-A office market in Shanghai, withinformation about supply and demand, rents, vacancy rates and theoffice investment market Overview and Outlook Market rents continue to decline In the third quarter (Q3), amidcontinued pressure on office spaceabsorption, most landlords furtherreduced asking rents, bringing theaverage rental level in Shanghaito RMB6.25 per sqm per day. Onthe supply side, two new projectstotalling 139,990 sqm were completedand delivered, a 68% QoQ decline.Against the backdrop of a slightincrease in vacancy rate to 23.3%, netabsorption reached only 75,525 sqm. The leasing activity was primarilydriven by financial institutions andprofessional services firms, whileco-working brands bucking the trendwith expansion emerged as a markethighlight. absorption of existing inventory, isset to intensify market competition.In the short term, Shanghai’s officemarket is likely to remain a tenant-driven, with landlords continuing tooffer rental reductions and enhancedleasing incentives to attract clientsand actively reduce vacancy levels. Over the next 12 months, nearly600,000 sqm of new projects areexpected to enter the market inemerging areas. The phased influxof new supply, coupled with sluggish Supply and Demand Rising demand for co-working spaces drives expansion among co-working brands In Q3, the pace of newly launchedproject in the market slowedconsiderably, with only two newprojects completed and delivered,adding 139,990 sqm of new supply,a QoQ decrease of 68%. Both newlycompleted projects are located innon-core areas of Puxi, including SMLPhase 2 (59,190 sqm) and Xuhui VankeCentre Phase Three T2 in the ShanghaiSouth Station area of Xuhui District(80,800 sqm). In Q3, leasing activities weredominated by corporate leaserenewals and relocations. Amidcost-cutting and efforts to enhanceoperational efficiency, tenants withexpiring leases either negotiated rentreductions upon renewal or relocatedto nearby buildings offering lowerrental rates. Fuelled by considerationsof cost-savings, there was a noticeablerise in relocation demand linked tocorporate resource integration, as wellas an increase in lease restructuringduring the lease term. spaces, enhancing their brand image.In the financial sector, persistentlylow deposit rates and a buoyantsecondary market drove influxesof incremental capital, fuellingbusiness expansion among securitiesand asset management firms andconsequently increasing their demandfor office upgrades. Notably, non-techenterprises—such as logistics, tradeand media companies—relocatingfrom creative industrial parks toGrade-A office buildings madea significant contribution to theabsorption of vacant space during thequarter. transactions. Flexible lease terms,comprehensive amenities, and cost-effective rental rates proved highlyattractive to short-term transitionalusers, small-scale trading firms, andearly-stage tech startups. Additionally,the rapid growth of self-mediadriven by AI advancements and theemergence of “one-person companies”further fuelled demand for co-workingspaces. These operators effectivelyalleviated landlords’ pressure inabsorbing vacant space. Their rentpayment models — either “rentplus profit-sharing” or “pure profit-sharing” — reduced leasing costs,enabling sustained expansion andcreating a win-win scenario for bothlandlords and co-working brands. Leasing demand in Q3 wasprimarily driven by the finance,professional services, retail, andTMT enterprises, which togetheraccounted for over 60% of totalleasing transactions. Within theprofessional services sector, law firmsshowed a notable increase in demandfor office upgrades. Amid sustaineddeclines in market rents and sluggishdemand, law firms capitalised onsubstantial rent reductions in coreCBDs to actively upgrade their office In Q3, co-working spacedemonstrated robust demand inShanghai’s office market, accountingfor over 20% of new leasing Rents Market rents decline, but some sub-markets show signs of positive momentum In Q3, sluggish office spaceabsorption and intensifiedcompetition between new projectsand existing inventory continuedto incentivize landlords to offerrental discounts as a primary leasingstrategy. Grade-A office market rentscontinued to drop by 4.1% QoQ toRMB6.25 per sqm per day, amongwhich rents in expanded CBDs saw asharper drop of 7.2% QoQ, while thosein core CBDs narrowed their declineto 4.2% to RMB8.46 per sqm per day edging down 0.8% QoQ to RMB9.60per sqm per day, leveraging its statusas prime business district to attracthigh-paying tenants such as foreignretail brands, financial institutionsand consulting firms. Other resilientsub-markets, including Qiantan, Xujiahui and Century Avenue alsoshowed resilience. Notably, Qiantan,as the primary spillover destinationfrom Little Lujiazui’s demand, saw itsrents dip 0.8% QoQ to RMB5.95 persqm per day. amid increased relocation demandfrom financial institutions and lawfirms. Nanjing West Road stood out asone