The Ongoing Saga of Developing Nanjing Road

Sunday, July 27, 2008 23:58

Over the life of All Roads, I have written a few posts about the development of Nanjing Road, and it is time for another edition.

to be honest, this is a post I have struggled with as I have been on a retail project for 6 months.. have lots to say about Shanghai’s development, but I can never get it started. So, I am going to change up the format a bit

1) Following the lines of my posts Nanjing Road… Will the Construction Ever End? and Part 2, I am happy to report that the majority of major new building construction along Nanjing Road is over. Wujiang Road has been completed, Jia is open, and the apartment complex has turned over keys (buy in above 50,000 RMB/ meter).

However, the are just in front of this (where Pizza Hut, Valley Gourmet, Starbucks, and that great Cantonese place on the corner of Maoming USED TO BE) is under massive reworks. the landlord of the building literally threw out some of his tenants (KTV on the 2-4 floor showed up one day to a missing escalator)… and Marks & Spencer have just put up their advert that they will be in the space later this summer (no way possible… look at picture).

2) Wujiang Road has fully opened (see my post ), but there is a problem. A BIG PROBLEM.

Apparently, and this is according to 2 conversations, a lot of the shops were unlicensed.. and now Yoshinoya, Subway, Yogo, and the “Apple Store” are closed (update: they have been reopend now). It is kind of interesting that they have all the employees in the shop, but it looks like the authorities are really cracking down on theb “soft opening” concept where restaurants open while their license applications are in process.

85 Degrees apparently worked their issue out the quickest, but I suspect we are looking at some list revenue as part of this (I have a friend who waited a year for a retail license).

3) Nanjing West Road development heads west. For the last 2 years, the area from the very end of Nanjing Road (near Zhenning Road) to Changde Road has been undergoing a lot of change. Nearly every piece of real estate except for the park, the temple, and the Bailemen hotel has been knocked down.

The area between Huashan and Changede will see more shiny glass buildings that are sure to blind us into buying the China dream, while the western part is still up in the air. they have removed some old buildings built in the late 80s, removed a beautiful little park, and I am sure that whatever they have planned is big. If you look at the picture above, the red areas are currently demolished areas with some work being done (a couple of workers playing poker … to cranes on site), yellow is actively building with footprint, columns, and glass works all in process, and green is a new park

4) In preparation for the Olympics (How could I not talk about this), we have seen a lot of eye-in-the-sky installations, new trash cans, Olympic torch night lights, and flower boxes. nothing over the top in any of those… actally the flower boxes are quite nice, and unlike the previous bins, I actually know which side is for recycling.

5) Another massive turnover of retail shops is ongoing (see my previous post ), and it appears that the southern area of Nanjing roads prime retail district has chewed up and spit out another 4-5 retailers. there are already new suckers tenants who are going through fit out.

In a nutshell that is it. I have a few larger posts related to Shanghai’s urban planning, and some recent real estate trends, in the works.. and hopefully I can overcome the real estate writers block

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