Beijing ($45/sqft, 18.5% vacancy) and Shanghai ($122/sqft, 19.8% vacancy) compete on different axes: Beijing on talent depth and Shanghai on rent and tax.
Beijing ($45/sqft, 18.5% vacancy) and Shanghai ($122/sqft, 19.8% vacancy) compete on different axes: Beijing on talent depth and Shanghai on rent and tax.
| Metric | Beijing | Shanghai |
|---|---|---|
| Region | APAC | APAC |
| Country | China | China |
| Class A rent (USD/sqft/yr) | $45 | $122 |
| Class A rent (local) | 320 CNY | 880 CNY |
| Vacancy | 18.5% | 19.8% |
| Trend | softening | softening |
| Prime yield | 5.6% | 4.4% |
| Premium flex / seat / month (USD) | $580 | $740 |
| Submarkets covered | 5 | 5 |
| Corporate tax | 25% | 25% |
| Metric | Beijing | Shanghai |
|---|---|---|
| Typical term | 5 yrs | 3 yrs |
| Typical rent-free | 8 mos | 8 mos |
| Lease norms | Net leases. 5-7 year terms standard. Free rent of 6-12 months and TI of CNY 1,000-2,000/sqm typical on a 5-year Class A deal. | Standard 3-year lease with renewal option. Rent gross of management fees but exclusive of utilities. Bank guarantee or rent deposit of 3-6 months standard. Reinstatement at lease-end is contractual. |
| Tax note | 25% standard Chinese corporate income tax. 15% reduced rate for High and New Technology Enterprises (HNTE). Beijing offers tech-sector subsidies in Zhongguancun and the Beijing Free Trade Zone. | Headline corporate tax 25% (15% for High and New Technology Enterprises). Free Trade Zone advantages exist. |
| Metric | Beijing | Shanghai |
|---|---|---|
| Talent index (0–100) | 90 | 76 |
| Talent note | Deepest tech, finance, and government affairs talent in China. Strong feed from Tsinghua, Peking University, Renmin University, and a deep network of T-1 universities. Mandarin-only operating environment for most domestic tenants. | Mainland China's deepest financial-services and tech talent pool. Average all-in compensation indexes 76. |
Beijing: Beijing Subway (27+ lines, the world's largest by length). Beijing Capital Airport (PEK) and Daxing Airport (PKX) both rail-served. CBD walking access from multiple subway interchanges.
Shanghai: Shanghai Metro covers every Class A address. Hongqiao TGV / Maglev connectivity to Beijing and the Yangtze Delta.
Beijing is the cheaper Class A market on a USD basis.
Beijing has the deeper talent index (90/100 vs 76/100).
Tax rates are tied.
Beijing typical term is 5 years with 8 months free; Shanghai runs 3 years with 8 months free.
Beijing: Beijing Subway (27+ lines, the world's largest by length). Beijing Capital Airport (PEK) and Daxing Airport (PKX) both rail-served. CBD walking access from multiple subway interchanges. Shanghai: Shanghai Metro covers every Class A address. Hongqiao TGV / Maglev connectivity to Beijing and the Yangtze Delta.
Score Beijing, Shanghai and up to two more markets side-by-side on Class A rent, vacancy, talent, corporate tax, and premium flex pricing — all in USD.
Reviewed by Kenji Watanabe — APAC contributing editor. Last updated 2026-04-15. See our methodology and editorial standards.