Vacancy at upscale malls rises in China as consumers hold back on luxury purchases
/Chinese visitor spending on luxury goods has not only slowed down in Canada, the U.S. and Europe. It has affected malls in China as well.
High-end malls in Beijing and Shanghai have had to reduce rents and seek retail tenants that cater to middle income shoppers to fill vacancies and boost foot traffic. For example, Parkview Green Beijing, known for its unique architecture and art collection, is diversifying its tenant mix following the departure of prestigious brands like Ermanno Scervino and ROLEX. K11 Shanghai is experiencing less demand by local luxury shoppers.
Mall vacancy rates in Beijing has risen to 10.6% and 9.5% in Shanghai, respectively as of 2024, according to Cushman & Wakefield.