M A R K E T B E AT

SUZHOU
Retail Q4 2019

YoY 12-Mo. No New Projects in 2019 but Expect More in the Future
Chg Forecast
No new quality projects entered the market in 2019, with many prime projects postponing their opening to 2020. Following the opening of landmark
shopping centers such as Suzhou Center and Suzhou Paradise Walk in Suzhou’s core areas, many newly opened malls are now focusing more on
8.2% targeting local communities and introducing popular brands to attract young consumers. Hongtang Mall and New Main Mall, due in 2020, are
Disposable Income
expected to follow this strategy. Further landmark projects are also scheduled to launch in the coming three years. China Cen tral Place and
Longfor are expected to complete significant projects in Suzhou’s mature and emerging submarkets. Notably, Oriental Gate, near Suzhou Center,
0.4% which will incorporate both classic Chinese and western decorative styles and is scheduled for completion in 2020.
Population Growth (2018)
Rail Transit Network Expansion and Shopping Experience Enhancement Benefit Retail
9.6% Q4 saw the completion of Metro Line 3, making travel to several commercial hubs in the city much more convenient. This will l ead to higher footfall
traffic to malls located in the applicable hubs, with greatly enlarged catchment populations. Department stores are also seeking to enhance their
Tourism Revenue Growth
consumer shopping experience, by incorporating the latest retail technology such as robot shopping assistants, hosting concerts for children, or
Source: Suzhou Statistics Bureau. staging dance performances and shows. Such enhancements have played a part in the performance improvement for prime retail pr operty, with
The forecast is based on Oxford Economics the average vacancy rate edging down to 4.68% and the average monthly rental climbing to RMB 598.1 per sq m.

SUZHOU ECONOMIC INDICATORS

O2O Strategies a Key Contributor to Success
JAN - SEPT 2019
Suzhou still has potential to further grow its retail sales market, and its significance is rapidly being recognized by onlin e retail platforms. The face-
YoY 12-Mo. to-face customer interaction that comes with a bricks-and-mortar store is important, enabling a retailer to effectively gauge who their customers
Chg Forecast are, where they are, what and why they are purchasing, and what they may purchase next. In many cities around China we are now seeing
6.4% growing numbers of online stores setting up a physical store presence to garner first hand information and data on their cust omers and their
Total Retail consumption habits. Perfect Diary is one such store that has adopted this strategy, opening its first physical store in Suzho u during the quarter.
Sales Growth

6.0%
GDP Growth

RENT RANGE BY SUBMARKET RETAIL SUPPLY PIPELINE BY SUBMARKET

2.7%
CPI Growth

Source: Suzhou Statistics Bureau

The forecast is based on Oxford Economics
M A R K E T B E AT

SUZHOU
Retail Q4 2019

MARKET STATISTICS
SUBMARKET INVENTORY (SQ M) UNDER CNSTR TILL 2023 OVERALL AVG RENT (RMB/SQ
VACANT (SQ M) VACANCY RATE
(SQM) M/MO)*
Guanqian 121,000 8,495 7.0% - 700-1,350
Shilu 195,000 4,200 2.2% 150,000 350-450
Canglang/Nanmen 224,000 14,840 6.6% - 150-600
Jinji Lake 1,248,000 60,020 4.8% 100,000 510-750
SND 772,000 37,830 4.9% 233,000 300-900
Wuzhong 338,000 10,130 3.0% 120,000 300-540
SUZHOU TOTALS 2,898,000 135,515 4.7% 503,000 150-1,350

* Rental rates are calculated by NLA and considered as consistently achievable for prime space (usually the ground floor) in major shopping centers, excluding management fee, promotional fee and other fees.

SIGNIFICANT STORE OPENINGS Q4 2019 SHAUN BRODIE

PROPERTY SUBMARKET TENANT SECTOR Head of Occupier Research, Greater China
Longfor Times Paradise Walk SND Perfect Diary Beauty 42-43/F, Tower 2, Plaza 66, 1366 Nanjing West Road
Suzhou Center Star Mall Jinji Lake Sonny Angel Forest Exhibition - Shanghai
Tel: +86 21 2208 0529 / shaun.fv.brodie@cushwake.com
Tianhong CC Mall Shilu Yearns Tour Food & Beverage
Shilu International Shilu Naixuecha Food & Beverage
Nuzzon Guanqian Mini Cuppa Food & Beverage

cushm anwakefield.com

SIGNIFICANT PROJECTS UNDER CONSTRUCTION

PROPERTY SUBMARKET EXPECTED OPENING DATE SQ M
Hong Tang Mall SND 2020 110,000 A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION
New Main Mall SND 2020 43,000 Cushman & Wakefield (NYSE: CWK) is a leading global
real estate services firm that delivers exceptional value for
Oriental Gate Jinji Lake 2020 100,000 real estate occupiers and owners. Cushman & Wakefield is
China Central Place Shilu 2021 50,000 among the largest real estate services firms with
approximately 51,000 employees in 400 offices and 70
Dongwu Paradise Walk Wuzhong 2021 120,000 countries. In 2018, the firm had revenue of $8.2 billion
Gusu Paradise Walk Shilu 2022 100,000 across core services of property, facilities and project
management, leasing, capital markets, valuation and other
KIC Mall SND 2023 80,000 serv ices.

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contained within this report is gathered from multiple sources believed
to be reliable. The information may contain errors or omissions and is
presented without any warranty or representations as to its accuracy.