Financial storm batters Grade A leasing

SHANGHAI: The city's high-rise buildings including the Shanghai World Financial Center (SWFC), the world's third tallest tower, may become the latest victim of the ongoing global financial crisis as premium tenants slash their rental budget and postpone expansion plans.

"Some of our American financial institutions have thought of leasing offices in the SWFC, but the leasing demand from other countries remain active and strong," Minoru Mori, Japan's most influential building tycoon and president of Mori Building Co Ltd, said at a forum in Shanghai on October 26.

Another newly finished high-rise building in Lujiazui Finance & Trade Zone, Mirae Asset Tower, has also been hit by the sagging market. The Korean building which has had space available since the third quarter is still more than half empty. "In good years, the building will have a 70 to 80 percent occupancy rate, however, after one year of pre-leasing, the Tower has only secured 40 percent," said Regina Yang, head of research at the London-based property consultancy Knight Frank.