Shanghai's core CBDs to face premium Grade A office shortage

In spite of huge new office developments scheduled for completion between 2014 and 2020, Shanghai's core CBD areas is expected to face a shortage of premium Grade A office space in coming years, a report says.

There are about 7.6 million square meters of Grade A office space, including premium Grade A, scheduled for completion in the nation's financial hub, but up to 70 percent, or 5.3 million sq m of it, will be located in emerging business districts, said a report released by international property consultant Knight Frank on Wednesday.

The report also estimates Shanghai will face a shortage of premium Grade A office space in core CBD areas due to the limited availability of land in central locations.

As of the first half of 2013, the city's stock of premium Grade A and Grade A office space reached 6.2 million sq m. In 2012 alone, about 1 million sq m of Grade A office space was added to the existing stock, with 36 percent located in CBD areas.