Note: The vacancy rate calculation excludes owner-occupied projects across the city.

Note: Prime Retail refers to the Urban market.

Weak consumption constrained brand expansion, although segments driven by emotional value continued to perform. Total retail sales of consumer goods recorded negative growth in 2025 (down 3.1% YTD), prompting brands to adopt a generally cautious approach to store expansion and increasing surrender pressure across traditional sectors. Meanwhile, fast food, IP-driven consumption, ACG and outdoor apparel continued to attract strong footfall, reflecting consumers’ growing preference for emotionally engaging and experience-led offerings amid heightened price sensitivity.

New supply was heavily concentrated in the first half of 2025, with a notable slowdown in pipeline deliveries during the second half. Total new supply in 2025 exceeded 800,000 sqm, approximately half of the 2024 total but still slightly above the 2022–2023 average — signalling a more rationalised supply pipeline. Notably, 360,000 sqm was delivered in Q2 2025 alone, all within the core market. Prime projects such as Daji Uni Elite and ZGC Art Park achieved high occupancy upon opening, supported by precise positioning and strong leasing capabilities. In the second half of 2025, deliveries contracted sharply and were largely located in suburban markets, creating a buffer for the absorption of existing stock within the urban market.

Downward pressure on rents intensified, while operational capability emerged as the key driver reshaping asset value. With tenant budgets tightening and market competition intensifying, net effective rents in the urban market declined by 2.5% q-o-q by end-2025. Leading projects accelerated tenant-mix adjustments to sustain occupancy and enhance customer experience, while non-core assets were forced concede further on rents and commercial terms, widening the performance divergence across the market. “Looking ahead to 2026, a substantial recovery in consumer confidence will depend on broader macroeconomic stabilisation alongside improving household income expectations,” said Ji Ming, Senior Research Director for JLL North China. “Core assets with superior locations, clear customer positioning and strong operating capabilities are already leading the market to a floor through brand refreshes and tenant mix restructuring. Efficient operations and sharp market insight will drive Beijing’s retail market into a new era.”