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Presentation Title BEIJING RETAIL March 2019 MARKETBEATS 11.6 ¥2,470 9.5% ST OCK RENT VACANCY RATE (m illion sq m) (PSM/ MO) Market Overview Economic Indicators With no new projects completed in Q1, Beijing’s prime retail stock remained at 13.55 million sq Trend of past Q3 2018 Q4 2018 one year m. Among this, the share of department stores decreased to 14% following plans to convert GDP Growth 6.7% 6.6% both the Daxing Wangfujing and Chang’an department stores into shopping centers. Total Retail Sales of 4.1% 2.7% Consumer Goods Growth Further upgrades are taking place across the city’s retail hubs. Notably, the iconic Wangfujing CPI Growth 2.5% 2.5% Pedestrian Street is planned to be extended in length to 892 meters, from 548 meters today, according to a January announcement by the Wangfujing Construction Management Bureau. CCI 110.2 113.3 Source: Beijing Statistics Bureau Given Wangfujing’s historical and commercial significance, it appears the proposed transformation has drawn interest at the national level. In addition, a number of other retail Total Sales of Consumer Goods projects in the Wangfujing submarket are adjusting their tenant mix in an effort to boost footfall 300 traffic, which is expected to bring in new opportunities to the submarket. 240 180 120 Several new entrants emerged in Q1. COS took out a lease in Taikoo Li to serve as the brand’s 60 first-ever men’s apparel store. Elsewhere, Japanese jeweler I-PRIMO opened at Beijing APM, (BillionRMB) 0 and MIRAGE launched its first sports activities space in Asia at Beijing Fun. Online Retail Sales Meanwhile, the Beijing Municipal Bureau of Commerce issued guidance on March 15 aimed at Total Retail Sales of Consumer Goods (Online Retail Sales Excluded) encouraging development of the “first store economy.” According to the guidance, financial and Source: Beijing Statistics Bureau policy support will be provided to new retail entrants to Beijing. Priority markets for development Historical Retail New Supply are Wangfujing, Xidan, Sanlitun and Tongzhou. 160 Outlook m) 120 A Cushman & Wakefield sq Research Publication Six retail projects at a combined 427,000 sq m of new supply are scheduled to complete in 80 (‘000 2019, albeit there is a likelihood for delay which would result in a projected slowdown of 40 construction compared to the past few years. Urban renewal projects in the city’s core area and 0 DATA 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 INTO neighborhood shopping malls in suburban areas are expected to remain the predominant ACTION CBD Chongwenmen E2R-Chaowai sources of new retail supply in the future. Ahead, it is expected that more older department Gongzhufen Lufthansa OGV Others Sanlitun Shilipu-Qingnian Road stores in the city will undergo transformations into modern shopping centers. Wangfujing Wangjing Xidan www.cushmanwakefield.com Source: Cushman & Wakefield Research BEIJING RETAIL MARKETBEATS March 2019 Sabrina Wei Prime Average Rental Range in Main Submarkets (Q1 2019) Head of North China Research SUBMARKET RMB/SQ M/MO US$/SF/MO EUR/SF/MO 12-MONTH OUTLOOK Tel: +86 10 8519 8087 [email protected] Wangfujing 800 – 3,200 9.7 – 38.9 11.1 – 44.3 Xidan 1,000 – 2,500 12.2 – 30.4 13.8 – 34.6 800 – 3,500 14/F, North Tower, Beijing CBD 9.7 – 42.6 11.1– 48.4 Kerry Centre, 1 Guanghua Sanlitun 1,500 – 2,800 18.3 – 34.1 20.8 – 38.8 Road, Beijing 100020, China Zhongguancun 1,300 – 1,800 15.8 – 21.9 18.0– 24.9 * Exchange Rate: 1CNY = 0.149USD = 0.131EUR, as March 25, 2019. * Average rent (RMB/sq m/mo) is based on ground floor rent in prime locations in major shopping centers, excluding management, promotional and other fees. Significant New Store Openings (Q1 2019) PROJECTS LOCATION TENANT TYPE Beijing Fun Chongwenmen Keepland Fitness Joy City (Chaoyang) Shilipu-Qingnian Road Cindy’s Umami by Han Dinning Takoo Li Sanlitun COS Men’s Shop Clothing Solana Lifestyle Shopping Park Lufthansa HEYTEA PINK Store Dinning DATA INTO ACTION Significant Projects Under Construction BUILDING LOCATION GFA (SQ M) ESTIMATED OPENING A Cushman & Wakefield Research Publication China World Mall (3B Boutique CBD 50,000 2019 District) th Cushman & Wakefield (NYSE: CWK) is a leading global real estate Fangyuanli ID Mall (Phase 1) East 4 Ring Road 100,000 2019 services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate Taikoo Li (West Zone) Sanlitun 30,000 2019 services firms with approximately 51,000 employees in 400 offices and 70 countries. In 2018, the firm had revenue of $8.2 billion across Beijing Capital Land Outlets core services of property, facilities and project management, leasing, Other (Fangshan) 88,000 2019 capital markets, valuation and other services. To learn more, visit (Phase 2) www.cushmanwakefield.com or follow @CushWake on Twitter. Longfor Chang’an Paradise Walk Other (Mentougou) 90,000 2019 www.cushmanwakefield.com Copyright © 2019 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy..
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