“Several retail districts in Shanghai—Huaihai Road, Wujiaochang and Nextage—continue to attract strong leasing demand. As a result, brands see them as safer locations for new stores even as the wider retail market remains weak but stabilising. ” —— CHESTER ZHANG, RESEARCH



Key Segments and Districts Drive Growth

•Despite a weaker impact from consumer subsidies, Shanghai’s retail sales rose 7.2% YoY in the first two months of 2026.

•First-floor shopping mall rents in urban areas declined 0.2% QoQ and 1.6% YoY in Q1/2026, with the rate of decline easing.

•The overall vacancy rate continued its downward trend from H2/2024, falling 0.4 ppts QoQ to 10.5% (down 0.9 ppts YoY).

•Huaihai Road (M) and Wujiaochang in Puxi recorded strong net absorption, accounting for nearly 30% of the city’s total in Q1/2026.

•Nextage and Jinqiao led demand in Pudong, contributing around 40% of district demand. Nextage vacancy rates have declined for six consecutive quarters and is now below 2019 levels.

•The large-format gym segment (>1,000 sqm) is recovering, with several brands rolling out larger stores, supporting upgrades in the fitness and wellbeing sector.