Shanghai's Lujiazui office market to take a bath, World Financial Centre will still prosper

Implications: Mori has proven track record in staying power to see themselves through tough markets, World Financial Tower will fill and prosper.

Analysis: There is now doubt that the World Financial Centre is a stunning addition to Shanghai's skyline. The sleek design complements and contrasts with the more classic lines of Jinmao Tower next door. I have watched this building rise from the duck pond it once was every morning when I walk my dog and take my children to nursery school.
 
The only problem is that Shanghai's Lujiazui office market is set to take a bath in the coming months. Already we have seen that developments in the area rumoured to be fillling up quickly at the beginning of this year are only around 50% occupied. Of this years new supply only Standard Chartered Bank Building has reached a high level of occupancy by pursuing a 'smart' leasing strategy.

Mori's track record in Shanghai in such markets is strong and they will meet their targets give or take a few months either way. While not the building of choice for everyone, just as with HSBC Tower before, the quality of the building and landlord will make it irresitable for enough of the right sort of tenants.