Market Fundamentals

  • 2016 Beijing Commercial Property Market to Maintain Steady Development;
  • Commercial property development and transition are driven by urban development strategies.


  • An increase in new supply to further release demand;
  • Tertiary industry growth underpins increasing leasing demand; domestic enterprises dominate, with firms from the financial and IT industries the most active;
  • Landlords to opt for a steady leasing strategy in the face of large amounts of new supply; competition to vary among the different submarkets;
  • Inactive investment market with stable yield and price.


  • Future supply to moderately rebound; prime-quality projects to stimulate market demand;
  • The evolution of consumption trends is altering retail formats; the role of physical stores is transforming;
  • Rental growth continues to slow down; effective operation is key to enhancing the value of  properties;
  • Value-added properties are sought-after; experience in operation and management becomes an essential trait to successful retail property investment.


  • Economic and consumption structural adjustment promotes the upgrading of logistics demand;
  • The state of short supply to ease in the short term; the supply gap to remain a prominent feature of the market over the long term;
  • Projects in mature districts to lead the overall rental growth;
  • Logistics property investment activity to increase.