Shanghai retailers spending more on rent

Shanghai (CNS) -- Retailers in Shanghai are increasing their budgets for rent thanks to the growing consumptive power in China's domestic market, while multinationals worried about the global economic depression are becoming hesitant to expand their Chinese offices, revealed Jones Lang LaSalle's latest report.

Jones Lang LaSalle, a financial and professional services company specializing in the real estate industry, released its first season report on Shanghai's housing market on Tuesday afternoon.

Mid-end fashion brands and dining companies are scrambling for more stores, while Gap, H&M, C&A, Muji and Mango have all released ambitious blueprints targeting Shanghai and other parts of China, according to the report.

In terms of first rate offices, rents climbed by 1.2 percent in the first season of 2012, up 11.4 percent year on year. Non-central office buildings were more favorable in the first three months.

The numbers do not indicate a winter for the office rental sector, however, as shrinking office supplies and soaring demands from domestic companies lay a promising foundation for more profits in central business zones.