The recent construction boom in Shanghai has resulted to an influx of investors who want to take advantage of new business opportunities as well as comfortable working spaces for themselves and employees. Shanghai real estate, unlike properties in other Chinese cities like Beijing, is still relatively more affordable. However, it is still wiser to choose properties with care, especially when it comes to properties located in or near the center of the city. Here are a few practical tips on how to rent an office in Shanghai.

Ideal Properties

There are a number of ideal properties in Shanghai. Among the areas favored by expats and international companies is the Pudong area, where numerous buildings offering commercial spaces are located. This is also one of the fastest growing areas in the city and is perfectly suited for commercial establishments. The outskirts offer more affordable properties. Areas like Suzhou offer relatively inexpensive commercial spaces for foreign corporate renters. If the location is not very important, there are numerous properties in the outskirts of Shanghai.

Rental Details

The minimum rental duration is one year and most commercial lessors require customers to fork over 3 months’ worth of rent. For high end properties, the rental costs start at about 500,000 RMB per year for a 100 square meter space, while more modest office spaces located near the center may cost businesses about 150,000 per year for the same size. Prices are more affordable in the outer parts of the city. For example, commercial office spaces for rent located in the outskirts of Shanghai cost about 50,000 RMB per year for 100 square meters of office space and lower than that for spaces located farther away from the center. For spaces located farther away, rental spaces cost about 30,000 to 40,000 RMB per year for the same size of office space.

There is no need to worry about other legal requirements since most Shanghai real estate agencies take care of the details for their clients. Some rental spaces may not come furnished, however, so it is best to hire a local staff member to prepare the space for occupation before actual operations commence.

Another option for foreign businesses seeking to launch operations in Shanghai would be to rent directly from property management companies. Not only are the spaces furnished and ready for occupation, they also offer longer lease durations compared to regular rental contracts. It is important to note, however, that in order to make rental payments easier; it is advisable to use an account with a Chinese bank. Most companies use the Agricultural Bank of China or Bank of China to process rental payments.

Choosing a Good Real Estate Agent

For companies with no local connections, the best person to go to would be a local real estate agent if they want to rent an office in Shanghai. Real estate companies that work with foreign companies are wise options, since these companies are more familiar with the legal requirements for foreign companies that want to lease real estate in China.