Institution: Demand continues to recover, with net absorption of office space in Shanghai increasing by double digits compared to the first quarter.

Recently, several commercial real estate institutions have successively released the first quarter of 2026 Shanghai real estate market reports. Overall, the leasing demand for office buildings, retail properties, and warehouse logistics in Shanghai continues to show a recovery trend, with market activity steadily increasing. At the same time, investment market transaction sentiment is warming up, and the attractiveness of assets in core areas is becoming more prominent. In the first quarter of 2026, the Shanghai office market continued its recovery trend. According to reports from JLL, the net absorption of Grade A office buildings in the city reached 201,000 square meters, with 72,000 square meters in the central business district and 130,000 square meters in the non-central business district, the latter continuing to benefit from cost-driven and upgrade-demand trends. CBRE's report shows a 26% increase in net absorption in the city in the first quarter. Both institutions mentioned that cost-driven relocations and upgrade-demand are still the main support for the current office building market.