Shanghai’s rapid emergence as a cluster for intelligent manufacturing and technological innovation is attracting a growing number of industries and creating new occupier demand for business parks.
To understand the composition of business park demand in Shanghai, CBRE recently conducted a study covering 4,113 occupiers, 8.01 million sq. m. of space and 147 projects.
Key findings include:
- The largest occupiers by industry are TMT (25% of occupied space), Industrial Manufacturing (16%), Pharmaceutical & Life Science (11%), Electronic Products (10%) and Consumer Manufacturing (8%);
- Domestic enterprises (73%) account for the bulk of leased area and have increased their share since the last survey was conducted in 2018. Among domestic tenants, TMT is the main driver of demand, while among foreign occupiers, the Industrial Manufacturing sector is the largest occupier.
- There is a trend for industries to agglomerate in certain areas. Over 70% of Technology & Internet firms are clustered in Zhangjiang and Caohejing; Automobile Manufacturing tenants are mostly located in Caohejing and Linkong; and Pharmaceutical & Life Sciences companies are most prominent in Zhangjiang and Pujiang.