JLL launches new office grade for Shanghai premium towers

JLL has launched a new framework to assess office buildings in Shanghai, introducing a category it calls Elevated Premium Grade A offices.

The framework is outlined in a new white paper on Shanghai's office market. JLL argues that older methods of assessing Grade A buildings no longer reflect changes in tenant demand and landlord strategy.

The model combines three established development-focused measures with five newer operational measures. The traditional dimensions are specifications and facilities, location and accessibility, and amenities and services. The added dimensions are human-centric experiences, asset management adaptability, submarket empowerment, sustainability, and intelligence.

The shift comes as Shanghai's office market shows widening differences between top-tier buildings and the broader market. Occupiers are placing more weight on factors beyond physical specifications as they review relocation options.

JLL's research drew on long-term tracking of the Shanghai office market, a survey of 103 tenants, and interviews with landlords. The findings point to stronger demand for higher-quality space as businesses look to upgrade offices rather than simply relocate.

Under the new classification, buildings that perform strongly across all eight dimensions would qualify as Elevated Premium Grade A. JLL linked that segment to faster leasing, firmer rents, and lower vacancy pressure than standard Grade A stock.

Market data cited by JLL showed average rents for Elevated Premium Grade A offices at RMB 8.5 per square metre per day in the second quarter of 2026. Nearly 70% of those projects recorded either positive rental growth or flat rents in the first half of the year.

Newly completed projects in that top bracket have also been leasing up much faster than comparable buildings. For schemes completed after 2022, leasing absorption was running at 2.7 to 2.9 times the pace of regular Grade A offices.

Relocation demand appears to be a central factor in that performance. According to JLL, 94% of relocation transactions recorded for Elevated Premium Grade A projects over the past 12 months involved tenants upgrading their office space.

Market divide

The white paper says Shanghai is following a pattern seen in other major gateway office markets, where top properties attract stronger interest even during broader market weakness. That has sharpened a flight-to-quality trend as occupiers seek buildings that can support staff experience, operational flexibility, and priorities beyond location.

JLL expects tightening office land supply in core areas to make the top end of the market scarcer over time. It forecasts compound annual rental growth of about 6% over the next five years for Elevated Premium Grade A offices.

The company also linked the new assessment system to Shanghai's wider economic standing, saying the city's scale, business reach, and ability to attract multinational groups, industry leaders, and skilled workers continue to support office demand even as occupiers become more selective.

Anny Zhang, Chief Executive Officer of JLL China, said the shift required a broader way to assess office buildings. "Shanghai's global influence and overall competitiveness have continued to strengthen, supporting the continued expansion and upgrading of the office market. We have moved beyond the traditional metrics and introduced a multidimensional assessment framework that integrates perspectives from both development and operations. This new paradigm advances the narrative and market understanding of Shanghai's office market," Zhang said.

New criteria

The report is an attempt by JLL to formalise criteria that many landlords and tenants have been discussing more informally in recent years. In particular, the added measures place more weight on how a building is run after completion and how well it fits changing occupier needs.

Those criteria could influence how landlords position assets in leasing discussions and capital spending plans. They may also give tenants a more structured way to compare premium office options in a market where Grade A classifications can cover a wide range of building quality and management standards.

Daniel Yao, Head of Research at JLL China, said the top tier had already pulled ahead on key commercial metrics. "Elevated Premium Grade A offices in Shanghai have demonstrated consistent advantages in rental premiums and vacancy rates compared with regular Grade A offices. Entering 2026, Elevated Premium Grade A office rents have stabilized and started to bottom out, driving the overall office market recovery," Yao said.

JLL said the framework is intended to serve as a reference point not only for landlords and tenants but also for public-sector planning. Zhang said the company sees the model as a guide for resource allocation and property upgrades across the market. "This new assessment framework will drive Shanghai's office market toward higher-quality growth. It provides a valuable reference for governments to coordinate regional resource allocation more effectively, and for landlords to pursue enhancement across the 3+5 dimensions. It also equips tenants to identify high-quality buildings capable of transcending market cycles. The new assessment framework delivers holistic perspectives for industry stakeholders, and collective efforts will further entrench Shanghai's position as a pre-eminent global business hub," Zhang said.