Study On The Commercial Real Estate Business Model Of Shanghai

Compared with western countries, commercial real estate start later in China, but with the surprising pace of development, it's scale have caught up with many developed countries'.Recently, with the increasing vacant space and failure of projects, more and more problems in the commercial real estate have been exposed. Among those problems, the choices of commercial real estate business models get more and more attention from developers.Now there are three kinds of models in China, namely, net sales, net lease, and lease combined with sales. Different models have their own specific conditions and applicability, and then how to choose a suitable model appears very important.Through comparing analysis and empirical study, this paper analyzed systematically the development of commercial real estate in Shanghai, studied on its current business models. Paper also concluded the problems in the models, and then gave the countermeasures and suggestions. Lastly, paper demonstrated why Shanghai chose the model of only lease not sale.All of these make a reference to the developers in the choice of business model to fit for the development of Shanghai's commercial real estate.