Shanghai office market firms bullish expansion plans to let rent

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Savills Research and Development Consultancy Market latest statistics show that Shanghai in October of Grade A office rental index increased by 0.3% last month, to 6.7 yuan RMB / square meter / day. Five new projects will be delivered at the end of the year for Grade A office market in Shanghai has brought 403,000 square meters of new supply, of which 18 million square meters have been purchased for personal use by the end user. Savills also said that since the fourth quarter of Grade A office market in Shanghai all the new supply are located in Pudong, therefore, the Pudong office market will likely result in upward pressure on vacancy rates. Despite the adequate supply of Grade A office space but existing owners will continue to improve in the short term rental. With the end of the year holidays, some companies expect to complete the lease transaction, the budget is loose, while business expansion plans will also contribute to the growth in demand. As of the end of the fourth quarter, is expected to increase rents is expected to reach 2.0%. Recently Shanghai's Grade A office leasing transactions on the market more active. For example, renowned international investment bank Morgan Stanley has just Pudong Kerry Group Kerry City rented 10,000 square meters of office space, in addition to other Morgan Stanley, has a number of internationally renowned financial services and manufacturing, said lease intention; Fuji Electric Building, the Great Wall in the Putuo District of 5,000 square meters of office leasing; and the Pacific Century (Shanghai) Law Firm is also near the Shanghai Railway Station BM Intercontinental Center rented two floors 15,16, total office area of approximately 4,000 square meters.