Beijing’s retail market showed significant renewal in 2025, driven by urban regeneration projects and the upgrading of shopping malls. This revitalization has helped stimulate consumer spending and reduce vacancy rates across the city, according to CBRE’s 2025 Beijing Real Estate Market Review.
Urban Renewal Drives Beijing Retail Market Growth
The report revealed that 534,000 square meters of new retail space were added in 2025. Much of this growth came from urban renewal projects. In the fourth quarter, two revamped projects—Zhongguancun Art Park and Longfu Temple—contributed 294,000 square meters. Renovation-led development dominated the market, and this trend is expected to continue in the coming years.
Outlook for Beijing Retail Market in 2026
Christina Liu, CBRE’s regional managing director of Northern China, projects that Beijing will see more than 500,000 square meters of new retail space in 2026. Most of the new supply will come from renovation projects in established areas. Large new developments will also emerge in the city’s peripheral areas, such as the sub-center. These new spaces will offer diverse and immersive experiences to attract customers.
Diversified Retail Formats and Consumer Engagement in Beijing
The future Beijing retail market will focus on themes like emotional value, heritage combined with commerce, and non-standard retail formats. These developments aim to create unique consumer experiences. They will shift Beijing’s retail structure toward a more multi-centered and networked model. However, CBRE warned that broad consumption recovery will take time, and rental rates—especially in secondary locations—may remain under pressure.
Gradual Stabilization in Beijing Retail Market Sales
Retail sales in Beijing fell 3.1% year-on-year in the first 11 months of 2025. However, the decline was smaller than in previous months, signaling gradual stabilization. The “first-store economy” also grew, blending traditional culture with modern trends. This trend has become a key driver of innovation in the retail sector.
Challenges and Opportunities for Beijing Retail Market
The report highlighted that the benefits of the first-store economy are concentrated in a few strong projects. Aging and poorly positioned properties face pressure to consolidate or redevelop. Government measures to support consumption, such as credit assistance and improved payment systems, are expected to play a crucial role in revitalizing the sector.
Government Support and Market Trends for Beijing Retail Market
Beijing’s government has introduced several measures to support consumption, including subsidies and business incentives. These efforts will help foster innovation in business models. They will also promote high-quality development in sectors like culture, tourism, and creative industries.
Retail Vacancy Rates and Footfall Trends in Beijing
In the fourth quarter of 2025, the citywide vacancy rate for retail properties decreased to match the previous year’s level. This was due to rent concessions by landlords and a shift to footfall-driven tenants, like dining and lifestyle services. The government-led upgrades to commercial districts and initiatives aimed at attracting first stores have also contributed to this improvement.
First Stores as New Landmarks in Beijing Retail Market
Beijing attracted over 960 first stores in the first 11 months of 2025. Since 2019, the city has welcomed more than 5,000 first stores. Landmark centers, such as Sanlitun Taikoo Li, have become key fashion hubs.
Future Outlook for Beijing Retail Market
Wang Wei, a senior researcher at the Institute of Market Economy, stressed the need for more initiatives to boost consumption. Policies that benefit consumers directly should be implemented. Supporting innovative consumption models and encouraging new business formats will be essential for the sector’s long-term renewal.
