Shanghai Retail Market Outlook

Shanghai Retail Market Outlook
Kenny Ho
Head of Research,
Jones Lang LaSalle (Shanghai)
Major retail clusters in Shanghai
Wujiaochang
Putuo
Zhongshan
Park
W
jing
n
a
N
Rd Nanjing E Rd
The Bund
ai Rd
Huaih
Hongqiao
Lujiazui
ang Rd
y
g
n
a
h
Z
Xujiahui
ƒ
ƒ
USD 4.9 / sq m (lettable) / day for ground floor (mgt
fee exclusive),
9% vacancy
ƒ
Management fees (USD 6 -10/sqm/ month)
2
Demand exceeding supply
35%
Demand exceeded
citywide supply
Suburban
mall boom
30%
400
20%
300
15%
200
10%
Citywide Prime Takeup and Vacancy
Supply
Source: Jones Lang LaSalle Research
3
Takeup
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
0
2000
0%
1999
100
1998
5%
Thousand sqm
500
25%
Vacancy Rate
600
Rental expected to rise rapidly
60
50.0%
45.0%
40.0%
39.0
40
35.0%
30
25.0%
20.0%
20
15.0%
7.5%
10
10.0%
5.0%
0
Retail: Prime Rent and Vacancy
Prime Rent
Source: Jones Lang LaSalle Research
4
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
0.0%
Vacancy
Vacancy
30.0%
1998
Average Rent RMB/sqm/day
50
International retailers expanding
5
Historical buildings providing new upscale venues
ƒ Jia Hotel
Developer:
Property Type:
Building Size:
Levels:
Location:
Opening Date:
ƒ 102 Guangdong Road: Le Lan Club
Jia Shanghai
Boutique Hotel retail podium
Approximately 6,000sqm
Retail 2 levels
939 Nanjing W. Rd, Huangpu District, Shanghai
2007 Q1
Developer:
Property Type:
Building Size:
Levels:
Location:
Opening Date:
6
Zhou’s Group
High-end Club
3,000sqm
F1-F4
102 Guangdong Rd, Huangpu District, Shanghai
2007
Repositioning of existing malls continue
Super Brand Mall
Location: Lujiazui, Pudong
Overview: Adding new F&B locations,
reposition retail
Project Area: outside terrace area and
7,000 sqm of fashion
ÆGround floor effective rents up 100% from a year ago.
7
Suburban retail maturing (Daning)
Tenant Mix
Fashion
BELLEUVE
F&B
Billy &
Brothers
Other
CJ-CGV
8
Suburban retail maturing (Wanda)
Tenant Mix
Fashion
Hong Kong New World Department Store
F&B
Young Zone
Other
Shanghai
Book Store
Baodaxiang
Tom Bear
9
Suburban retail maturing (Balian New Era)
Tenant Mix
Fashion
F&B
Other
Tom Bear
Classic Cinema
10
Waitanyuan 2010 phase I
North Bund 2009 phase I
Major changes = More opportunities
South Station (operational)
Expo 2010
11
Outlook for Retail in 2007
1. Tight space in downtown leads to rising rents
2. International retailers expanding aggressively
3. Existing mall repositioning continues
4. Historical building refurbished
5. Suburban retail maturing
6. Major changes = major opportunities
12
Thank you