Zhangjiang submarket saw the most active life science leasing activities among Shanghai’s business parks, recording both expansion demand and new setups from companies over the past two years. In addition, Zhoukang, Pujiang, and Lingang Blue Bay submarkets also are becoming popular locations for life science companies. Each submarket benefits from distinct positioning, supportive policies, and other resources.

JLL has estimated the future supply of life science R&D office properties in each of Shanghai’s industrial parks based on detailed plans from the city’s administrative districts as well as the development progress of individual business park areas. Approximately 1.6 million square meters of life science properties are expected to enter the market in the next three years. Although the expected supply is substantial, most of these projects have already been pre-leased or customized by committed life science companies. Overall, the market has achieved an average pre-leasing rate of 70%. In the short term, R&D office properties will remain in short supply and the leasable space will remain limited.

“Strong demand from life science companies and scarcity of vacant space has led to a steady increase of the rent level of life science R&D properties. Vacancy rates for these properties in Shanghai will remain below 5% over the next three years, and the rent level of R&D properties will continue to rise steadily,” said Stephen Yu, Head of Shanghai Business Park Services of JLL Office Leasing Advisory.