M A R K E T B E AT

BEIJING
Retail Q4 2019

YoY 12-Mo. Market Overview

Chg Forecast
In Q4 the completions of SKP-S in CBD, Longfor Chang'an Paradise Walk in Mentougou District and RK World Plaza in Changping District
12.1 added a combined 150,000 sq m of new retail supply, increasing the stock of shopping malls to 12.1 million sq m.
Stock (million sq m)
Luxury department store SKP opened the prestigious SKP South store in Kaisa Plaza, directly across Jianguo Street. Compared with the SKP
store, SKP South provides a more innovative and futuristic consumer experience incorporating elements of technology and art to create themes
¥2,480 such as Future Farm, Digital-Analog Future and Time and Space Tunnel.
Rent (PSM/MO)
Driven by the First Store Economy initiative, Beijing’s retail market welcomed more international brands and further diversified. According to the
latest data released by the Beijing Commerce Bureau, a total of 540 “first stores” launched in Beijing in the first three quarters of 2019. Shopping
9.0% malls in the core submarkets remain the key venues for brands to open their first store in Beijing. In the quarter, Saleen Automotive’s first China
Vacancy Rate experience center launched in Parkview Green, SKP South introduced Gucci’s first beauty boutique experience store, and Gentle Monster
Source: Cushman & Wakefield Research opened their world-first coffee shop. Swarovski also opened its first Asia Pacific Crystal Studio store in Xidan Joy City.
With the support of the Nightlife Economy policy a number of submarkets and malls have launched winter-themed light shows, cultural events,
sports activities, and food events. Examples include Solana Lifestyle Shopping Park’s Lights Festival, Beijing Fun’s hosting of the New Year
BEIJING ECONOMIC INDICATORS
Concert with the National Centre for Performing Arts, and Xi'dan’s Food Festival launched to welcome the Spring Festival. According to the
Q3 2019
Ministry of Commerce, Beijing will also launch a guide to shopping nightlife to continue to promote the Nightlife Economy.
YoY 12-Mo.
Chg Forecast Outlook
6.2% In 2019 Beijing registered 462,000 sq m of new retail supply, down 50.5% y-o-y. Nearly 40% of the new supply were urban renewal projects. The
GDP Growth market has now entered the upgrade stage, with many department stores closed for upgrading during the year. Shopping malls will commence
the upgrade process in 2020. Aegean Shopping Park will close at the end of February and may be converted into office use. With the supply
4.8% slowdown, coupled with renewal projects, we expect the vacancy rate in the core submarkets to continue to decline in the short term, and rental
rates are expected to increase further.
Total Retail Sales of
Consumer Goods
Growth
RENT / VACANCY RATE RETAIL SUPPLY PIPELINE BY SUBMARKET

2.1% 2,500 15% 1,600

CPI Growth

(‘000 sq m)
1,200
(RMB/sq m/month)

2,400
10% 800
8.8% 2,300
5%
400
Per Capita Disposable 2,200 0
Income of Urban
Residents 2,100 0%
2015 2016 2017 2018 2019 CBD Chongwenmen E2R-Chaowai
Gongzhufen Lufthansa OGV
Others Sanlitun Shilipu-Qingnian Road
Source: Beijing Statistics Bureau / Cushman & Wakefield Research Asking Rent Vacancy Rate
Wangfujing Wangjing Xidan
M A R K E T B E AT

BEIJING
Retail Q4 2019

MARKET STATISTICS
ASKING RENTAL RANGE
SUBMARKET INVENTORY (SQM) UNDER CNSTR TILL 2023 (SQM)
RMB/SQM/MO EUR/SF/MO US$/SF/MO
CBD 939,849 40,000 800 – 3,500 9.6 – 45.4 10.6 – 50.2
Sanlitun 216,000 30,000 1,500 – 2,800 17.9 – 33.4 19.8 – 37.0
Xi’dan 199,000 0 1,000 – 2,500 11.9 – 29.9 13.2 – 33.0
Wangfujing 450,000 0 800 – 3,200 9.6 – 38.2 10.6 – 42.3
Lufthansa 364,000 0 1,300 – 1,200 9.6 – 14.3 10.6 – 15.9
E2R-Chaowai 242,985 0 500-1,500 6.0 – 20.9 6.6 - 23.1
Chongwenmen 309,000 120,000 800-1,000 9.6 – 11.9 10.6 – 13.2
OTHERS TOTALS 9,365,130 3,072,966 / / /
BEIJING TOTALS 12,085,964 3,262,966 2,480 25.9 28.7
*Data includes shopping malls only.
*Asking Rental Range (RMB/sq m/mo) is based on ground floor rent in prime locations in major shopping centers, excluding management, promotional and other fee s.
Exchange Rate: 1USD = 0.903898 EUR = 7.03146 RMB, as of Nov. 22nd 2019.

SIGNIFICANT STORE OPENINGS Q4 2019 Sabrina Wei

Head of North China Research
PROPERTY SUBMARKET TENANT SECTOR +86 10 8519 8087 / sabrina.d.wei@cushwake.com
Parkview Green CBD SALEEN Automobile Experience Center Automobile
Jason Luo
Taikoo Li Sanlitun LOOK STORE Fashion Head of North China Retail Services
Viva Plaza CBD HUAWEI Experience Store + Electrical & Electronics +86 138 1063 9757/ Jason Luo@cushwake.com
cushmanwakefield.com
SKP-S CBD GUCCI Beauty Cosmetics

Xidan Joy City Xidan Swarovski Crystal Studio Jewelry

A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION

SIGNIFICANT PROJECTS UNDER CONSTRUCTION Cushman & Wakefield (NYSE: CWK) is a leading global
real estate services firm that delivers exceptional value for
PROPERTY SUBMARKET EXPECTED OPENING DATE SQM real estate occupiers and owners. Cushman & Wakefield is
among the largest real estate services firms with
Fangyuanli ID Mall Other (Chaoyang) 2020 100,000 approximately 51,000 employees in 400 offices and 70
countries. In 2018, the firm had revenue of $8.2 billion
Chia Tai Commercial Center CBD 2020 40,000 across core services of property, facilities and project
management, leasing, capital markets, valuation and other
AWESOME PLAZA OGV 2020 100,000 services.
Longfor Lize Project Lize 2020 90,000
©2020 Cushman & Wakefield. All rights reserved. The information
contained within this report is gathered from multiple sources believed
Longfor Sunny Paradise Walk Other (Mentougou) 2020 105,000
to be reliable. The information may contain errors or omissions and is
presented without any warranty or representations as to its accuracy.