Research On Commercial Real Estate Operation Model Based On Value Chain Analysis

The commercial property in China is rapidly developed that can be seen from the total size of investment and the increased ratio of investment in real estate industry. Since most commercial property developers come from the residential property developing industry, they lack professional experience and knowledge in operation management of commercial property. There rises a series of problems. On one hand, developers emphasize short-term interests but ignore operation control in operation stage, which leads to unstable operation models. On the other hand, developers and operators have a poor understanding of the value chain of commercial property, so they cannot accurately control the roles of key participants and also their behaviors, the market is in a disorder status.There are five main operation models in commercial property by far, they are " pure sale"’pure rental"," not only for sale"," sale and rental" and " associated operation with sellers". The main roles in the value chain of Chinese commercial property include the government, the developer, the investor, the operator, the seller and the customer. Different operation model has different advantages and disadvantages, different functions of roles and the roles get different value. To recognize the value of the whole chain, we cannot focus on a certain link or short-term interests.This paper aims at researching the operation models of commercial property from the value chain theory. Firstly, it discusses the current situation of commercial property industry and its operation models as well as their problems. Secondly, it analyses the mutual relations and value flow in the value chain of commercial property. Thirdly, it studies the value chain of each model. Finally, it shows a case study to analyze its operation model.