The Zhitong Finance App learned that the latest report released by JLL indicates that in the second quarter, a total of four projects were completed in the Shanghai Grade A office market, with a supply area of 0.261 million square meters. Affected by new supply, the city's vacancy rate increased 0.5 percentage points month-on-month to 23.5%. Among them, the central business district vacancy rate increased 0.3 percentage points month-on-month to 15.6%; the non-central business district vacancy rate increased 0.5 percentage points month-on-month to 30.1%. Jiangsu, a senior director of JLL's Shanghai Commercial Real Estate Department, said that it is estimated that after next year, as new supply is reduced, the rent level of grade A office buildings in Shanghai will rise somewhat.

Judging from net absorption, activity in the Shanghai Grade A office market has increased. According to the data, under the “price for volume” strategy, the net absorption of office buildings in Shanghai rebounded to 0.1157 million square meters in the second quarter.

Due to large market supply and limited new demand, overall rents for Shanghai Grade A office buildings fell 4.3% month-on-month to 6.6 yuan per square meter per day in the second quarter. Landlords encourage tenants to relocate and upgrade through attractive rent policies, while existing projects continue to benefit tenants in order to maintain occupancy rates.

Jiangsu pointed out that landlords' rent concessions have encouraged larger tenants' willingness to relocate and upgrade, while cost-saving demand has also prompted enterprises to relocate to non-central business districts, driving a recovery in net absorption. In the central business district, tenants seize the opportunity of market price adjustments to upgrade office space; in non-central business districts, as the rent gap narrows, some suburban enterprises relocate and upgrade to non-central business district A projects, hoping to achieve a better balance between cost efficiency and office environment.