The China Index Research Institute recently released a research report on the rental index of the top 100 commercial streets, top 100 shopping centers, and major commercial office buildings in key cities in China. The report shows that in 2025, the rental prices for commercial properties in key cities continued the downward trend from 2024, with a 0.81% year-on-year decrease in the average rent of the top 100 streets, and a 1.82% decrease in the daily rent of major commercial office buildings. The report indicates that in 2026, the rental prices for commercial office spaces and retail commercial properties may face difficulties in reversing the downward trend.
On February 23, the China Index Information Technology Research Institute released a report on the 2025 commercial real estate rental index in China. In the second half of 2025, the average rent for commercial properties on the top 100 streets was 24.05 yuan per square meter per day, a 0.47% decrease compared to the first half of the year, with a cumulative decrease of 0.81% for the whole year.
The research was based on survey data from samples of main commercial streets in 15 key cities nationwide, with 100 commercial properties on key streets forming the rental index.
The Institute analyzed that the continuous decline in rental prices of commercial properties in major Chinese cities, along with the widening drop, can be attributed to three main factors. Firstly, the slowdown in the growth of restaurant revenues has put pressure on the overall rental prices of commercial properties, as the restaurant industry is a significant part of commercial streets.
Secondly, the impact of “premium shopping centers” has diverted some of the foot traffic that would have originally gone to shopping and consuming on commercial streets.
Thirdly, the “price in exchange for quantity” strategy has been adopted by many commercial streets in China to retain businesses by lowering rental prices in order to maintain occupancy rates.
The report indicates that in 2025, many retail commercial projects still choose to reduce vacancies by adjusting prices, resulting in a larger decline in rental prices for commercial properties in key cities. In the short term, rental prices may struggle to reverse the downward trend in 2026.
According to the report by the China Index Research Institute, in the second half of 2025, the average rent for commercial properties in the top 100 malls was 26.99 yuan per square meter per day, a 0.22% decrease compared to the first half of the year, with a cumulative decrease of 0.34% for the whole year.
Based on survey data from typical shopping center commercial property leases in 15 key cities nationwide, with 100 typical shopping center commercial properties in key cities forming the rental index.
The Institute also released survey data on leasing trends for major commercial office buildings in key business districts across the country. The data shows that despite an increase in office supply in some cities in 2025 compared to 2024, demand remains relatively weak, leading to an oversupply situation in the market and a continued decline in office rental prices.
In the fourth quarter, the average daily rent per square meter of major office buildings in key business districts in the country was 4.53 yuan, which decreased by 0.44% quarterly, with a cumulative decrease of 1.82% for the whole year. The report suggests that in 2026, the office rental market in key cities may continue its adjustment trend in the context of overall weak demand, leading to a potential further decline in office rental prices.
A recent report by Deed Liangxing on the Beijing office market review and outlook in the fourth quarter of 2025 indicated that to increase project occupancy rates, landlords further lowered rental levels, extended rent-free periods, and renovation periods.
Effective rents in Beijing decreased by 4.6% quarter-on-quarter and 16.0% year-on-year to 205.62 yuan per square meter per month. In terms of market demand, the continuous impact of insufficient tenant demand, terminations, and reductions in space led to a net absorption of 79,294 square meters in the fourth quarter. Throughout the year, the net absorption in the city remained at 328,000 square meters, the same as in 2024.
Commercial real estate in China includes office buildings, malls, commercial streets, hotels, retail stores, mixed-use residential buildings, and warehouses, with office buildings, malls, and commercial streets being the primary forms.
According to the “2025 First Quarter China Office Rental Index Research Report” released by the China Index Research Institute, commercial real estate transactions with disclosed amounts amounted to 20.7 billion yuan, accounting for 56% of the total, while transactions for commercial, mixed-use, and hotel properties totaled approximately 6.7 billion yuan, accounting for 18%, and other transactions accounted for the remaining 26%.