Source: JLL Research

In addition to financial considerations, our survey highlights increasing requirements for superior building quality and property management. This aligns with JLL’s track record that shows 74% of relocation deals in the past three years reflected a desire for improved office space. Three primary reasons for firms moving include inefficient AC, few elevators, and inadequate restrooms. Naturally, different industries prioritise different office facilities. For example, TMT (Technology, Media, and Telecommunications) firms usually have high workforce density, creating a greater need for a larger number of restrooms. Life sciences companies, aligning with their ESG (Environmental, Social, and Governance) commitments, place greater emphasis on green building certifications.

Figure 3: Shanghai office tenant survey: Facility deficiency that most likely to urge tenants to relocate

*Respondents can choose up to six options.

Source: JLL Research

Given the current tenant-favourable market, landlords can enhance the competitiveness of their properties through high-standard property management and differentiated services. 91% of respondents value high-quality property management, and 84% of surveyed firms expressed a demand for corporate membership benefits from landlords. By offering discounts for parking spaces or exclusive offers at associated retail stores, landlords can foster a stronger sense of belonging and attract more customers to other sectors of the commercial property.

For more details, please download “Navigating the Tides: A dynamic view of Shanghai office market”.