Rents Shanghai: RMB per sqm of gross space per day
Typical lease term Generally minimum 2 years (usually with an option for the tenant to renew for an additional
2 or 3 year term at market rates). Standard lease is normally 3-5 years
Frequency of rent payable (in advance) Monthly
Typical rent deposit (expressed as x months rent) 3 months of rent and management fees payable in cash or check. Bank guarantee/letter of credit
is not accepted by most of the property due to the local banking environment.
Security of Tenure Only for the duration of the tenancy, no guarantee beyond the original lease term
Does tenant have statutory rights to renewal Yes but it is a common practice to stipulate an option to renew if tenants require
Basis of rent increases or rent review Open market rental value. Renewed rental cap to be negotiated
Frequency of rent increases or rent review Generally at lease renewal, but if an agreed lease is over 5 years, rent is normally reviewed
every 3 or 5 years