In addition to M50, there are others along the Suzhou Creek, Tian Zi Fang on Taikang Road, Red Town on Huaihai Road W., 1933 Old Millfun in Hongkou District and Bridge 8 on Jiangguo Road M.

"Creative industry is a name card for Shanghai," says He of the Shanghai Creative Industry Center. "They seemed to become popular overnight, but problems arise when too many competitors are striving in the same field and economic conditions are not ideal. That's especially so in the arts that are influenced by the global financial crisis."

Highstreet Loft on Jianguo Road W., near Jiashan Road, in Xuhui District opened in December 2008.

It's the site of the Shanghai Textile Group's Shanghai No. 9 Knitting Factory that produced underwear for the famed Three Guns brand.

It took a year to plan and another year for reconstruction. "The idea was to establish a SOHO in Shanghai's center by using the powerful background of our textile group and attracting fashion labels," says Ma Ni, vice general manager of Shanghai Highstreet Loft Investment Co.

Culture, history and location are important factors when investors consider possible sites. The oldest structure in Highstreet Loft was built in the 1920s.

"The arts atmosphere is hard to copy," says Ma.

In early 2007, the occupancy rate of creative industry parks was over 90 percent, but it dropped to 80 percent in one year, according to He.

Many fashion shops and design studios left when they found the location unsuitable.

"Customer flow is vital to fashion stores that depend on sales, but Highstreet Loft can't provide so much," says Ma.

After many changes, the concepts of "showroom" and "fashion social" have evolved in this old factory creative space.

"Highstreet is not a place people go only for shopping, it's also the site of a fashion social," says Ma. Enjoying a cup of coffee in a relaxing atmosphere and checking out the latest fashion trends are what's on offer.

As creative parks seek to differentiate themselves and better target their clients, they also face the problems of the worldwide financial crisis.

Rents and occupancy go down.

An example is the famous old abattoir 1933 Old Millfun in northeastern Shanghai's Hongkou District.

It has a glorious dome and open space, ideal for galas and special events.

It used to be the Shanghai Industry Bureau Slaughter House.

During the entire year of 2008, however, only 35 events were held there.

"It can generally hold two events for international labels every month," says He of the Shanghai Creative Industry Center. "However, it will be very hard to hold this kind of event now, due to the financial crisis."

Red Town on Huaihai Road W. arose in 2006 in the warehouses of an old steel factory.

It's adjacent to the Shanghai Sculpture Space and features sculpture, arts and advertising.

With a good location in city center and the arts and culture theme, the average rent in Red Town is about 10 yuan per square meter per day.

"The current situation is quite stable, but we are ready to make appropriate (downward) adjustments due to market conditions," says Zheng Peiguang, chairman of Red Town.

"I don't know how much the price will decrease, but I'm sure it will definitely not increase in the near future," he says.

In Highstreet Loft, the average rent in 2008 was 4.69 yuan per square meter per day. Ma doesn't dispute that fees may well decrease because of the economic slowdown.

But she is still very confident of the future of Highstreet.

"The vital elements for survival of a creative industry park are still accurate targeting, developing direction and management," she says.

The financial crisis may create opportunities for creative industry parks with lower rentals, compared with office and apartment buildings.

"When a commercial company considers moving to a cheaper office, perhaps Highstreet will be a good choice," says Ma.