China’s slowing economy remains key headwind for Shanghai office, retail assets: Morningstar

“We think China’s slowing economic growth remains a key headwind for consumer spending and business expansion. For retail malls, we note that vacancy rates for Shanghai downtown retail districts remain healthy at 5.4% as of 3Q2024, according to Cushman and Wakefield,” writes Lee in an Oct 15 note. “This should provide some support for market rents that are being weighed down by weak retail sales performance and supply of new retail malls, albeit in the secondary retail areas.”