M A R K E T B E AT Office Q2 2021

12-Mo. Four New Grade A Office Projects Completed in Q2, More Expected in 2H Forecast Four new office projects entered the market in Q2, adding a combined 217,075 sq m of new supply to the Shanghai Grade A market. Baoland ¥281.5 completed a renewal project in Changning , while the other new office projects were in suburban districts including Fringe Xuhui, Minhang, Rent (PSM/MO) and Expo & Qiantan. Total Grade A office stock rose to 13.96 million sq m. Ten further new office projects are now expected to complete in the second half of the year, including several previously delayed projects. -0.84% Rental Growth (QOQ) Leasing Market Activity Sustains Into Q2 Grade A leasing market activity continued in Q2 following a strong Q1. Total net absorption recorded 400,422 sq m, dropping citywide average 14.6% vacancy down to 18.8%. Net absorption in the core areas rose to 102,425 sq m, with Lujiazui submarket accounting for 47,381 sq m, including BNP Vacancy Rate Paribus’ notable relocation to the Shanghai Centre. We expect New Area to attract further quality tenants ahead, supported by reform (Core, Grade A) Source: Cushman & Wakefield Research policies. Net absorption in the non-core area totaled 297,997 sq m in Q2, as Yangpu, Minhang and Expo & Qiantan all saw strong take up. The absorption performance saw vacancy fall to 14.6% in the core area and 25.1% in the non-core area. By industry, the TMT sector led activity with

SHANGHAI ECONOMIC INDICATORS 25.2% of all transactions in the quarter, followed by Professional Services and Finance sectors with around a 20% share each. With further Q1 2021 innovation-focused policies and planning expected, we expect these sectors to play key roles in the future Grade A office market.

Q4 12-Mo. 2020 Forecast Core Area Rental Dipped in Q2 17.6% Alongside the fall in vacancy, core area rental levels fell 0.8% q-o-q to stand at RMB281.5 per sq m per month. We expect rents to fluctuate within GDP Growth 1.7% a reasonable range in the short term in the face of continued competition from emerging areas. In suburban areas the entrance of new quality projects helped push up average rents 1.9% q-o-q to reach RMB193.8 per sq m per month.

14.3% 1.8% Tertiary Sector GRADE A CBD OVERALL RENT & VACANCY RATE GRADE A CBD NEW SUPPLY Growth 1,000 330 18 320 16 800 0.3% 1.7% 14 310 CPI Growth 12 600 300 10 290 8 400 6 sqm)

280 Vacancy Rate (%) 24.7% 4

Rent (RMB/sq Rent (RMB/sq m/mo) 200 Real Estate Sector 11.0% 270 2 Investment 260 0

Lettable Lettable OfficeArea (‘000 0

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Q417 Q121 Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q118 Q218 Q318 Q418 Q119 Q219 Q319 Q419 Q120 Q220 Q320 Q420 Q221 Source: Shanghai Statistics Bureau Core Jing'an Changning New Huangpu Lujiazui Zhuyuan Core Xuhui The forecast is based on Moody’s Analytics Overall Rent Vacancy Rate (%) Source: Cushman & Wakefield Research Source: Cushman & Wakefield Research M A R K E T B E AT SHANGHAI Office Q2 2021

PLANNED & UNDER GRADE A EFFECTIVE RENT INVENTORY VACANCY SUBMARKET CONSTRUCTION (sq m) RATE (sq m) RMB/SQ M/MO USD/SF/MO EUR/SF/MO

Core Jing’an 1,243,257 11.4% 274,132 ¥349.0 US$5.07 €4.16

New Huangpu 1,838,027 15.4% 573,101 ¥274.6 US$3.99 €3.28

Lujiazui 2,229,646 17.2% 0 ¥309.7 US$4.50 €3.69

Zhuyuan 1,279,149 10.7% 212,008 ¥242.5 US$3.53 €2.89

Core Xuhui 519,255 3.5% 320,975 ¥291.4 US$4.24 €3.48

Changning 1,258,154 20.5% 157,518 ¥221.6 US$3.22 €2.64

SHANGHAI GRADE A CBD TOTAL 8,367,488 14.6% 1,537,734 ¥281.5 US$4.09 €3.36

Shanghai Grade A Suburban 5,589,052 25.1% 3,088,084 ¥193.8 US$2.82 €2.31

Rental equals “Gross Transacted Face Rental” 1 USD = 6.3897 RMB = 0.8204 EUR (2021.06.08)

KEY LEASING TRANSACTIONS 2Q21 Shaun Brodie Head of Business Development Services, East & PROPERTY SUBMARKET TENANT SQ M LEASE TYPE Greater China Content 42-43/F, Tower 2, Plaza 66, 1366 Nanjing West Road Raffles City Hongkou Huawei 10,000 Relocation Shanghai Tel: +86 21 2208 0529 / [email protected] Shanghai World Financial Centre Lujiazui Dentons 10,000 Relocation About Cushman & Wakefield Cushman & Wakefield (NYSE: CWK) is a leading global real Shanghai Centre Lujiazui BNP Paribas 9,000 Relocation estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among Qiantan Crystal Plaza Expo & Qiantan Junshi Biosciences 6,000 Relocation the largest real estate services firms with approximately 50,000 employees in over 400 offices and 60 countries. Across Greater China, 22 offices are servicing the local market. The SIGNIFICANT PROJECTS PLANNED & UNDER CONSTRUCTION company won four of the top awards in the Euromoney Survey 2017, 2018 and 2020 in the categories of Overall, Agency PROPERTY SUBMARKET MAJOR TENANT SQ M COMPLETION DATE Letting/Sales, Valuation and Research in China. In 2020, the Lumina Fringe Xuhui - 169,943 2021 firm had revenue of $7.8 billion across core services of SIIC Centre Hongkou - 95,028 2021 property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit Binjiang Urban Development Center Fringe Xuhui - 209,000 2022 www.cushmanwakefield.comor follow @CushWake on CR Land Zhangyuan Project Core Jing’an - 80,069 2023 Twitter. Shangxianfang Project Huangpu - 70,604 2024 Park Avenue Central Core Jing’an - 98,952 2024 ©2021 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources believed to be reliable. The information may contain errors or omissions and is *Expo & Qiantan suburban area includes Houtan area presented without any warranty or representations as to its accuracy.