Demand for design-conscious shops is growing as Shanghai
retailers look outside traditional locations to stand out from the
crowd, says a recent industry survey.
"Demand for retail spaces in places like the Bund and Xintiandi,
both imbued with the historic and cultural legacies of the city,
has been strong while options are few," said Kenny Ho, head of
research at Jones Lang LaSalle Shanghai. "With a sharp increase in
the number of retailers operating in the Shanghai market over the
past several years, finding a point of differentiation has become
essential."
At the moment, 1933, an abattoir turned high-end retail
destination in Hongkou District, is the latest redevelopment of
utilitarian buildings to be converted into design-conscious
shops.
The project on Shajing Road has already received quite positive
feedback from the market, according to its sales and marketing
agent, which started leasing three weeks ago.
As scheduled, the five-level development, a historically
preserved building designated by the Shanghai government in 2005,
will open in stages by the Chinese Lunar New Year, with rentals
ranging from 60 US cents to US$4 per square meter per day.
"I really enjoy wandering in design-conscious places during my
lunch break," said Rainbow Yu, who works for a US consulting firm
near Xintiandi. "The relaxing experience conveys a concept of
innovation and is very different from what I can get in traditional
shopping malls."
Meanwhile, a tight supply of spaces in traditional prime
shopping areas might also account for the trend, industry people
said.
For instance, landlords on Nanjing Road W. are looking for ways
to maximize revenues by making the most of every square meter as
retail vacancies fell to their lowest point.
Plaza 66 will open a watch store later this month in a basement
formerly occupied by a staff canteen, and the nearby Shanghai
Center is also planning to create more shops by using its
basement.
Vacancy rates in prime shops on Nanjing Road W. dropped to one
percent in the third quarter, compared to 3.2 percent in the first
quarter.
(Shanghai Daily October 18, 2007)
