Shanghai ($122/sqft, 19.8% vacancy) and Shenzhen ($40/sqft, 24.8% vacancy) compete on different axes: Shanghai on rent and tax and Shenzhen on talent depth.
Shanghai ($122/sqft, 19.8% vacancy) and Shenzhen ($40/sqft, 24.8% vacancy) compete on different axes: Shanghai on rent and tax and Shenzhen on talent depth.
| Metric | Shanghai | Shenzhen |
|---|---|---|
| Region | APAC | APAC |
| Country | China | China |
| Class A rent (USD/sqft/yr) | $122 | $40 |
| Class A rent (local) | 880 CNY | 290 CNY |
| Vacancy | 19.8% | 24.8% |
| Trend | softening | softening |
| Prime yield | 4.4% | 5.4% |
| Premium flex / seat / month (USD) | $740 | $540 |
| Submarkets covered | 5 | 5 |
| Corporate tax | 25% | 25% |
| Metric | Shanghai | Shenzhen |
|---|---|---|
| Typical term | 3 yrs | 5 yrs |
| Typical rent-free | 8 mos | 10 mos |
| Lease norms | 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. | Net leases. 5-7 year terms standard. Free rent of 8-15 months and TI of CNY 1,000-2,000/sqm typical on a 5-year deal. Concession environment is rich. |
| Tax note | Headline corporate tax 25% (15% for High and New Technology Enterprises). Free Trade Zone advantages exist. | 25% standard Chinese corporate income tax. 15% Qianhai Free Trade Zone rate for qualifying enterprises. HNTE (15%) and other tech-sector incentives available. |
| Metric | Shanghai | Shenzhen |
|---|---|---|
| Talent index (0–100) | 76 | 88 |
| Talent note | Mainland China's deepest financial-services and tech talent pool. Average all-in compensation indexes 76. | Deep tech, hardware engineering, and consumer electronics talent. Strong feed from Shenzhen University, Southern University of Science and Technology, and proximity to Hong Kong universities. Mandarin and Cantonese operating environment. |
Shanghai: Shanghai Metro covers every Class A address. Hongqiao TGV / Maglev connectivity to Beijing and the Yangtze Delta.
Shenzhen: Shenzhen Metro (16+ lines). Shenzhen Bao'an Airport (SZX) rail-served via Line 11. High-speed rail to Guangzhou (~30 minutes), Hong Kong (~14 minutes via Futian-West Kowloon).
Shenzhen is the cheaper Class A market on a USD basis.
Shenzhen has the deeper talent index (88/100 vs 76/100).
Tax rates are tied.
Shanghai typical term is 3 years with 8 months free; Shenzhen runs 5 years with 10 months free.
Shanghai: Shanghai Metro covers every Class A address. Hongqiao TGV / Maglev connectivity to Beijing and the Yangtze Delta. Shenzhen: Shenzhen Metro (16+ lines). Shenzhen Bao'an Airport (SZX) rail-served via Line 11. High-speed rail to Guangzhou (~30 minutes), Hong Kong (~14 minutes via Futian-West Kowloon).
Score Shanghai, Shenzhen 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.