Shenzhen's offline store market warms up

Writer: Chen Siqi  |  Editor: Stephanie Yang  |  From: Shenzhen Daily  |  Updated: 2021-04-07

Shenzhen's brick-and-mortar store market and top-tier office market have gradually recovered in the first quarter of this year (Q1), a report released by real-estate service firm Cushman & Wakefield recently confirmed.

The number of consumers in the city’s 18 shopping centers was 59 percent higher during this year’s Spring Festival than the same holiday in 2019. Additionally, the volume of sales surged by 104.7 percent, according to the data released by the Shenzhen Municipal Commerce Bureau.

With boosted consumption, the monthly rent for the best floors in Shenzhen’s quality shopping centers have also seen a steep rise during the past six months and some have reached 849 yuan (US$129) per square meter, the latest record showed.

The vacancy rate of the brick-and-mortar stores in these shopping centers dropped to 6.1 percent, down 0.8 percentage points than that of last year’s last quarter.

In Q1, businesses with new sports, like indoor rock climbing, online games and kart racing for children, were trending upward in renting stores of shopping centers.

The city’s top-tier office market added 164,800 square meters of new supply in Q1, bringing the total figure to 6.45 million square meters.

The city will see an addition of 815,000 square meters of stores in high-quality shopping complexes by the end of the year.

The vacancy rate of Grade-A offices has slightly declined by 0.47 percentage points from the last quarter to 25.54 percent. Meanwhile, the monthly rent for these offices slightly dropped by 0.9 percent to 209.57 yuan per square meter when compared to the previous quarter.

Cushman & Wakefield predicted that the city’s office market will see a new supply of 410,000 square meters of Grade-A offices upon the end of Q2, according to the buildings’ construction schedule.