Shopping Center Format Adjustment Accelerates Luxury Goods To Slow Down Expansion

The high latitude global report shows that in the third quarter of 2014, the overall rentals of several core business circle benchmark projects rose steadily compared with the previous quarter.

From the perspective of the overall market, luxury brands no longer focus on expanding the number of stores, but begin to focus on the performance appraisal of individual stores.

This is the current development strategy for many luxury retailers, and the focus is shifting from quantity to quality.

At the same time, the whole

The market is slowing this year. The global growth forecast is expected to not exceed 4% in one to two years.

Huang Qigang, director of Beijing consulting department, said: "luxury goods are facing changes in consumer tastes and consumption patterns. For example, more and more consumers begin to pay more attention to product quality and personalization characteristics, more like dilute label products, pursue low-key luxury, how to understand consumer psychology, adjust product style, balance brand quality and shop quantity, which will become the main task of the next stage of brand."

Lin Rongjie, executive director of high latitude Global Research Division, said: "under the dual impact of the downward pressure on the economy and the growth momentum of online shopping, retailers at home and abroad continue to be cautious about their brand expansion strategy.

The proportion of public catering in major shopping centers will continue to increase, which is expected to ease the downward pressure on restaurant income.

The centralization of new supply will bring pressure on project investment.

The entry of new projects may affect the overall average rent reduction of the business district where the project is located, but the scope will remain within a reasonable range.

The report shows that Beijing

Office rents remained stable. In the third quarter, the turnover area of office buildings in Beijing's core business area was about 84 thousand square meters, an increase of 55%, accounting for about 59% of the total paction area.

The turnover area of office buildings in non core business area is about 54 thousand square meters, accounting for about 38.3% of the total paction area in the city.

The average rents of Grade A (including top) office buildings in Beijing's five major business circles are 382.5 yuan per square meter per month, up 0.51%, up 0.38% over the same period.

Meanwhile,

The market vacancy rate of Grade A (top class) office remained low. In the third quarter, the vacancy rate dropped from 8.19% in the fourth quarter of last year to 4.45% in the past year.

CBD's grade A (top class) office vacancy rate dropped from nearly 9.16% of the fourth quarter of last year to 5.38% at present, mainly due to the fact that the new vacancy area has been gradually digested by the market in the past year.

Due to the entry of new projects in the Wangjing region, the vacancy rate in the region rose sharply from 2% in the two quarter to about 15% in the current quarter.

The addition of new high quality office buildings will further increase the competitive pressure in Wangjing.

Lu Mingrui, director of Beijing commercial department, said: "in the fourth quarter, if the construction projects enter the market on schedule, the Beijing office market will have an additional supply of about 520 thousand square meters.

Due to the higher pre rent rate and the greater demand for tenants for quality office buildings in the core business area, the new supply may have limited impact on the overall market rent.