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News Release


Pudong’s Grade A office stock exceeds Puxi in CBD by 2014

Jones Lang LaSalle expands its Pudong Branch and moves ‘up’ to prepare for the next wave of growth

Professional real estate services firm Jones Lang LaSalle announced it has doubled the size of its Pudong branch in Shanghai. The firm relocated from the 3rd floor to the 40th floor at Citigroup Tower, a building managed by the firm.  “Three years ago, in order to maximize opportunities and to better serve our clients, we made a strategic move to open our Pudong Branch and the expansion of our operations today is to further prepare for the next wave of growth in Pudong,” noted Anthony Couse, the managing director of Jones Lang LaSalle in Shanghai.  “In 2007, the total grade A office stock in Pudong was about 920,000 sqm, now it is 1.57 million sqm, a 70% increase. By 2014, according to our research, the total stock for Pudong will be approximately 3.05 million, higher than Puxi’s 3.01 million in CBD. ”

Over the past few years, Pudong has grown rapidly. The Pudong office market has been resilient and has a strong capacity to recover as witnessed during the global financial crisis. Driven by strong demand, mainly from domestic companies, Pudong office rents bottomed out before the Puxi market and most major markets in China. In 1Q10, rents in Pudong’s office market posted an increase of 5.4%, and reached an average rent of RMB 6.40 per sqm per day.

 “The office markets on both sides of the Huangpu River have grown differently. While Puxi is more dependent on foreign MNCs, the Pudong market’s biggest demand driver continues to be domestic companies, especially financial and banking institutions. In 1Q10, demand from domestic companies accounted for over 60% of the total transactions in Pudong,” noted Anthony Couse, managing director for Jones Lang LaSalle Shanghai. “Expanding our operations in Pudong enables us to better serve clients in this area.”

From only nine team members in 2007 when we opened to 19 today, Jones Lang LaSalle’s Pudong branch has grown rapidly and gained extensive experiences in delivering comprehensive solutions to our corporate clients, investors and developers. Alan Li, the head of Markets in Pudong for Jones Lang LaSalle Shanghai noted: “In 2009, we helped clients transact leases for 104,930 sqm of office space, which accounts for two-thirds of the total transactions in Pudong and has further refined  our team’s capability and allowed us to provide our clients with quality and timely advice. “

Some of the recent achievements by Jones Lang LaSalle Pudong team:

- Appointed as Joint Sole Leasing Agent for Shanghai IFC in 2009. Occupancy rate for HSBC Building (Tower I) has exceeded 90%, we introduced major tenants including Harvard, Chery Quantum, Citic Prudential, and Bloomberg. Leasing for Two IFC (Tower II) has also started

- Appointed as Property Manager for Azia Center in 2007 and as Sole Leasing Agent in 2009, and introduced major tenants including Panalpina, and Yuanta Securities

- Appointed as Sole Leasing Agent and Property Manager for One Lujiazui in 2007. Occupancy rate has exceeded 93%, and introduced major tenants including Zhonghai Fund, Shimao Group, and Zegna

- Appointed as Sole Leasing Agent, Property Manager, and Facilities Manager for Chamtime International Financial Center in 2007. Occupancy rate has exceeded 95%, with major tenants including Donghai Securities, China Futures, and China Everbright Bank

- Assisted Lujiazui Group for its successful acquisition of POS Plaza, which is the first major en bloc transaction for 2009; assisted Bank of Ningbo in purchasing 21st Century Tower in 2009 for a total of 7-storeys

- Acted as the property manager or property management consultant for 20 Premium Grade A or Grade A office buildings in Pudong, including Citigroup Tower, Azia Centre, One Lujiazui, 21st Century Tower, and Ping An International Finance Centre.

“In the coming three years, the Pudong office market will face a massive supply, with 345,186 sqm entering the market in 2010 alone. However, the market continues to show strong demand so we expect the Pudong Grade A rental market to increase 20% in 2010,” noted Alan Li. “With Shanghai vying to be an international financial and shipping center, as well as the World Expo, the city remains a key focus in China, mainly Pudong Lujiazui — the city’s financial and trading center. Our dedicated Pudong team is definitely poised to advise and support our clients as well as seize the tremendous business opportunities in the coming years.”