[photopress:real_estate_shanghai_world_center.jpg,full,alignright]Shanghai World Financial Center managers are asking future tenants to pay between $1.70 and 1.96 per square meter per day for space in the tower.
The high end of the range is 40% more than Shanghai’s previous record, set months ago by Park Place, an upscale development in downtown Jing’an Temple area. Rents there averaged $1.40 per square meter per day.
In 2008 when the 101-story, 492-meter-high Shanghai World Financial Center, located in Pudong’s Lujiazui finance and trade zone, is finished then it will be the new record holder for rents. Back-of-the-envelope calculations suggest that if it all fills up, and that seems likely, in office space alone it will be pulling in rents of about $150 million a year.
It is reported that Mori Building, Japan’s biggest private real estate developer and the builder of the HSBC Tower in Pudong, has already signed its first tenants for the World Financial Center.
Subsidiaries of Mizuho Financial Group and Sumitomo Mitsui Financial Group will lease space at the center. When completed it will be the second-tallest office building in the world after Taipei 101 in Taiwan.
It covers a site area of 30,000 square meters and has 377,300 square meters of floor space, including 226,900 square meters of offices, a five-star hotel and commercial space. Its observatory will be the world’s highest at 472 meters.
Remy Chan of Jones Lang LaSalle, Asia Pacific, a commercial real estate broker said, ‘The building will be a market maker because of its huge volume. We expect it to push the vacancy rate up to 5% for Pudong at the end of next year from 1.9% in June.’
Source: China View