China corporations go global with major implications for commercial real estate

8 June 2026 – As Chinese companies expand globally at an unprecedented pace, corporate real estate strategy has emerged as a critical pillar supporting their international growth. Despite the acceleration of China companies going global, many find consistent challenges when implementing commercial real estate strategies to support ambitious growth plans, according to new research published by JLL (NYSE: JLL).

JLL’s new research, "Thriving Beyond: Corporate Real Estate Strategies for Chinese Companies Going Global" paints a mixed picture of the challenges ahead faced through international expansion. According to JLL analysis, while an overwhelming 97% of surveyed Chinese companies view overseas expansion as important to their corporate strategy, many are venturing into unfamiliar territory without the systematic planning and professional expertise needed to manage their overseas real estate portfolios effectively.

"The strategic importance of corporate real estate is increasingly evident. Decisions around location strategy, asset management, workplace planning, and cross-border coordination are central to companies' overseas success and the global competitiveness of Chinese companies. This discussion is unique as it has both implications for Chinese companies and international real estate owners,” says Anny Zhang, Co-CEO, Greater China, JLL.

According to JLL's survey, 82% of Chinese companies expanding internationally encountered unexpected challenges during overseas site selection. The ripple effects have been significant: nearly two-thirds experienced project delays that disrupted their expansion timelines, while more than half faced budget overruns that strained financial resources. Furthermore, almost a third were forced to settle for suboptimal or interim locations just to get operations off the ground.

The survey reveals that differing expectations around response times emerged as the top pain point, affecting 78% of respondents. Close behind, nearly two-thirds of companies struggled with fundamental differences in real estate practices.

“Commercial real estate operates differently across regions, and these variations can easily lead to misunderstandings or even contractual disputes for companies lacking deep local expertise. We have learned that Chinese corporations going global are quick to admit to being unfamiliar with local property markets, leaving them without reliable benchmarks to make informed decisions about location quality, rental trends, or supply dynamics,” says Daniel Yao, Head of Research, China, JLL.

The challenges do not stop there. Many companies have found themselves struggling to negotiate with local landlords, facing inflexible lease terms and unclear performance clauses. Cross-cultural and language barriers add another layer of complexity, sometimes leading to costly misinterpretations of regulations, contracts, or operational requirements.

JLL analysis identifies seven representative scenarios that span the full spectrum of corporate real estate needs. These range from setting up initial overseas offices and selecting retail store locations to leasing logistics’ warehouses, building industrial facilities, and even constructing data centers.

For companies establishing their first overseas offices, the challenges often begin with misaligned internal responsibilities. When overseas business teams handle site selection without input from corporate real estate, legal, finance, or IT departments, the results can be costly.

Retail expansion brings a different set of complications. Chinese retail brands venturing abroad frequently encounter limited availability of prime locations, face high financial credibility requirements from overseas landlords, and struggle with unfamiliar supply chains. The regulatory landscape for store design and construction varies from market to market, often triggering repeated redesigns and permit approval delays.

Industrial and logistics’ expansions present yet another challenge set. In Europe, for instance, Chinese logistics providers have discovered that the preference for short-term leases common in China clashes with the European norm of seven to ten-year commitments. Meanwhile, companies seeking specialized facilities, such as warehouses certified for dangerous goods storage, have found supply extremely scarce and compliance requirements highly variable across countries.

“The good news is that most of these pitfalls can be avoided with proper planning and professional guidance. For companies in the early stages of international expansion, flexible office spaces offer a practical entry point. These solutions provide efficiency, short-term commitments, and inclusive amenities that reduce upfront costs for fit-outs, furniture, and administrative support. As operations mature and stabilize, companies can transition to conventional office spaces with more favorable terms,” says Zhang.

Significantly, the research reveals a clear trend toward greater professionalization of overseas real estate management. Three-quarters of respondents indicated they intend to establish standardized overseas site selection processes, while nearly half plan to engage external professional real estate service providers within the next two years. The most sought-after services include local site selection support, interpretation of property laws and compliance policies, property market research, and design and construction coordination.

“The shift reflects a broader maturation of Chinese companies' global expansion strategies. As these firms move beyond initial market entry toward building sustainable international operations, they are recognizing that corporate real estate is not just a logistical necessity—it's a strategic enabler of global competitiveness,’ says Yao.

JLL's whitepaper draws on survey findings, combined with real-world case studies and extensive advisory experience, to provide a comprehensive framework for Chinese companies navigating the complexities of global real estate strategy.

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