'Fresh vitality' eyed in Beijing retail property market

Beijing's retail property market showed clear signs of renewal in 2025, as renovation-led urban regeneration and upgraded shopping malls helped stimulate consumption and drive down vacancy rates, according to a new report by CBRE, a commercial real estate services and investment company.

In its 2025 Beijing Real Estate Market Review, CBRE said total new retail property supply in Beijing reached 534,000 square meters in 2025, with the addition coming from urban renewal projects, underscoring renovation-led development as the dominant market theme. In the fourth quarter alone, two revamped projects in secondary business districts, Zhongguancun Art Park and Longfu Temple, delivered a combined 294,000 square meters of new space.

Looking ahead, Christina Liu, regional managing director of CBRE Northern China, said Beijing is expected to see more than 500,000 square meters of new retail supply in 2026. "In mature shopping districts, most of the new supply will continue to come from renovation projects, while large newly built projects will be launched in peripheral areas such as the city's sub-center."

She added that those projects are likely to adopt more diversified positioning, focusing on themes such as "emotional value", "heritage plus commerce", non-standard retail formats and immersive experiences to attract footfall.

"These developments are expected to inject differentiated content and fresh vitality into markets, helping Beijing's retail landscape evolve toward a more multi-centered, networked and differentiated structure," Liu said, while cautioning that a broad-based consumption recovery will take time and that rents — particularly in secondary locations — will remain under downward pressure in the near term.

Data from the Beijing Municipal Bureau of Statistics showed Beijing's retail sales fell 3.1 percent year-on-year in the first 11 months of 2025, narrowing by 0.1 percentage point from the first 10 months of the year, pointing to gradual stabilization in the market.

CBRE highlighted in the report a continued rise in the "first-store economy", which has become a key driver in blending traditional culture with modern trends and local indigenous with global perspectives. However, CBRE said the benefits are increasingly concentrated in a limited number of projects with strong operational capabilities or deep repositioning, accentuating market polarization.

Liu noted that Beijing's recent measures — including consumption credit support and improved payment convenience — aim to boost spending, while authorities are promoting high-quality development in catering, culture, tourism, and creative industries.

"Projects with strong intellectual property appeal, outstanding operational capabilities and innovative content are expected to receive greater policy backing and market favor, while poorly positioned and aging projects face further consolidation or redevelopment pressure," she said.

According to CBRE, the citywide vacancy rate declined in the fourth quarter to the previous year's level, aided by landlords' rent concessions, a shift toward footfall-driven tenants such as dining and lifestyle services, and the gradual effectiveness of government-led initiatives to upgrade commercial districts and attract first stores.

Data from the Beijing Municipal Commerce Bureau show that more than 960 first stores opened in the city in the first 11 months of 2025. Since 2019, Beijing has attracted over 5,000 first stores, with 12 global debut centers — including Sanlitun Taikoo Li — emerging as new landmarks for fashion consumption.

Wang Wei, a senior researcher and former director of the Institute of Market Economy at the Development Research Center of the State Council, said special initiatives to boost consumption should be further implemented, with strengthened policies directly benefiting consumers.

"While maintaining the subsidy funds for the trade-in policy, efforts should also be made on multiple fronts to boost service consumption," she added. "We should also capitalize on the debut economy to strengthen backing for consumption innovation. Efforts should be made to back localities in developing new consumption scenarios, business formats, and models, promoting innovation in services and brands, and further enhancing the integrated innovation capabilities across commerce, tourism, culture, and sports."