Study On Government Role By Commercial Real Estate Development

On the background of the fluctuation of residential real estate market, our country’s commercial real estate market has been presenting the good momentum of development. Commercial real estate refers to various non-productive, non-residential real estate including sites for business operation of commerce and service industries, also office buildings, apartments, conference centers and so on.The government always plays an important role during the development of the business real estate. The research on the role of the government in the development of commercial real estate benefits the deeper research of the related theories and the related government policies of the commercial real estate. It also benefits the operating decisions of commercial real estate enterprises and the understandings to policies and rational investment of investors.Commercial real estate derives from the west, and it has been existing with the function of commercial operation, which is the outcome of modern commercial development and is very related to understandings of people nowadays to the functions of modern cities. The development of commercial real estate experienced three stages including the both slow development during the Industrial Revolution and the Second World War and the popularity from1970s to nowadays. And our country’s commercial real estate started from1970s or1980s and experienced the beginning, the single development, diversified development and maturity stage. At present, it has reached remarkable achievements, which focuses on the vigorous development of catering industry, large scale of the rise of urban complex, entertainment industry and so on.Government role is regarded as the effect of government’s exercise of power and personalizes the functional effect of the government. It tightly related to the government nature, status, power, function, task and so on. It also involves government power and function limit, behavior these many ways. In the western developed countries, although the government intervened less to the commercial real estate market with the concept of "night watchman" over a period of time, later "urban renewal" theory has provided evidence to the government intervention of commercial real estate market. Comparatively speaking, during the procedure of our country’s development of commercial real estate, the government, as the supplier of land and the decision maker of policies, has been playing an even important role and the changes of government role become much obvious.Although, at present, our country’s commercial real estate market keeps developing in a good trend, as a whole it is still in short supply. There are also many problems and challenges need to be solved and mentioned, which includes severe vacancy, simple copy, repeated industries, poor management and so on. All these problems alarm the government except that commercial real estate has its own problems to change its role, which involves first, vague manage starting point or biased manage direction, second, the poor authority of management and third, the poor efficiency of management.Commercial real estate market needs government role to change, it can be described as the government has to change from "governing" to "managing"."Managing", a strong inclusive concept, refers to "managing is to apply authority to keep order in a limited scale and to satisfy the public. The purpose of managing is to apply power to lead, control and standardize all the public activities in different rule relations, also to the maximum to increase public benefits." The managing theory provides our government role a new and thoughtful thinking. It may cause three kinds of changes of our commercial real estate market and the application of managing, which are, first, it will help to establish the basic target of "sustainable development" and correct the mistaken achievements guidance. Second, it will complete the related laws and policies and strengthen the authority of governing the commercial real estate market. Third, it will bring reflections and innovations to improve the efficiency of managing the commercial real estate market.