Core Insights - Urban renewal and consumption upgrade have become hot topics this year, with the term "consumption" appearing 32 times in the government work report, indicating its importance in driving domestic demand [1] - The integration of urban renewal and commercial consumption is crucial for the future development of commercial real estate, as highlighted by industry experts [1] Urban Renewal as a Supply Leader - In Q2, urban renewal projects became the main source of new supply in the retail property market, with notable projects like Zhonghai Dajixiang in Beijing's old city area achieving high opening rates [2] - The total commercial area of the newly opened Changping Super Extreme He Shenghui West District reached 430,000 square meters, catering to diverse consumer needs and revitalizing the commercial landscape in the northern region of Beijing [2] - Despite a 3.7% decline in restaurant revenue from January to May, the restaurant sector showed resilience with a 48% share of all new openings in Q2, while other sectors like tea and juice experienced slower expansion [2] Rental Market Trends - The average rent for shopping centers in Beijing continued to decline in Q2, down 0.7% from the first half of the year to 30.8 yuan per square meter per day, influenced by increased competition and a cautious approach from high-rent brands [3] - The overall net absorption in Beijing for the first half of the year was 162,000 square meters, with a slight increase in the vacancy rate to 7.5% [3] Reshaping Commercial Logic - The shift from functional consumption to experiential consumption is reshaping commercial logic, with urban renewal reflecting three key characteristics: cultural activation, content-driven experiences, and symbiotic operations [4][5] - Projects are increasingly focusing on emotional connections and immersive experiences to attract consumers, as seen in the integration of designer stores and cultural elements in community commercial spaces [6] Future Outlook - The Beijing government is promoting four key development areas in the fashion industry to stimulate consumption, with a focus on technology, health, creativity, and fashion [6] - Predictions indicate that over 390,000 square meters of retail properties will open in secondary business districts in the second half of the year, amidst a reshuffling of the commercial landscape [7]