According to a survey by the China Index Academy, retail rents along major commercial streets and in key shopping centers across China continued their modest downward trend during the first half of 2026.

The average rent for shops on the 100 major commercial streets (the "100 Streets" index) in key cities stood at 23.87 yuan per square meter per day, a decrease of 0.76% from the previous half-year period. Meanwhile, the average rent for shops in 100 typical shopping centers (the "100 Malls" index) was 26.90 yuan per square meter per day, down 0.36% from the prior half-year.

Looking at the distribution of changes, 81.5% of the sample commercial streets saw rents fall, while 18.5% experienced an increase. For the sample shopping centers, 85.3% recorded lower rents, 13.7% saw an increase, and 1.1% remained unchanged from the previous period.

Overall, new supply in key cities decreased slightly compared to the same period last year. Most newly built projects are located in emerging business districts, while core urban areas mainly feature renovation projects. Rental demand from retailers remained weak, increasing leasing pressure on landlords, which led to continued rent declines for most commercial streets and shopping centers.

1. The "100 Streets" Shop Rent Index

Rent Changes: The average rent for the "100 Streets" sample was 23.87 yuan per square meter per day in H1 2026, down 0.76% from the previous half.

In the first half of 2026, experiential and service-oriented consumption showed resilience. A boom in cultural tourism and a rise in inbound travel helped support slight rent increases for some landmark commercial streets in prime urban locations, particularly those focused on experiential formats like tourism, dining, and entertainment. Furthermore, some commercial districts underwent renovations and upgrades, improving the consumer experience and providing support for rent increases. However, against the backdrop of slowing growth in retail goods sales, foot traffic and tenant affordability weakened in most commercial streets, leading to a downward trend in rents. The decline rate of 0.76% was 0.29 percentage points wider than in the second half of 2025.

Commercial Street Performance: 81.5% of the sample commercial streets recorded a quarter-on-quarter rent decline, with relatively larger drops seen in streets like Chengdu Yipin Tianxia and Haikou Zhongshan Road.

In first-tier cities, 65.4% of sample commercial streets saw rents fall, while 34.6% saw an increase. In second-tier cities, 92.3% of sample streets experienced a decline, and only 7.7% saw an increase. Of the 81.5% of streets with falling rents, 13 streets, including Chengdu Yipin Tianxia and Haikou Zhongshan Road, saw declines of more than 2.0%. Another 18 streets, such as Shanghai Sichuan North Road, Hangzhou Hefang Street, Suzhou Shilu Pedestrian Street, and Haikou Qilou Old Street, recorded drops between 1.0% and 2.0%. For the 18.5% of streets with rising rents, Shanghai Huaihai Middle Road saw the largest increase at 1.07%. Four streets, including Shanghai Nanjing East Road Pedestrian Street and Shenzhen Dongmen Pedestrian Street, saw gains between 0.5% and 1.0%.

2. The "100 Malls" Shop Rent Index

Rent Changes: The average rent for the "100 Malls" sample was 26.90 yuan per square meter per day in H1 2026, a quarter-on-quarter decline of 0.36%.

In H1 2026, retail sales growth slowed. Only a few high-tier shopping centers in core locations managed slight rent increases, relying on the brand strength and customer appeal of benchmark projects or benefiting from renovation and upgrades. In contrast, many shopping centers were affected by oversupply, aging facilities, and homogenized competition, leading to reduced footfall, weaker tenant affordability, and continued rent declines. The 0.36% decline was 0.14 percentage points larger than in the second half of 2025.

Shopping Center Performance: 85.3% of sample shopping centers recorded a quarter-on-quarter rent decline, with larger drops in areas like Tianjin Meijiang and Haikou Jiefang West.

In first-tier cities, 88.6% of sample shopping centers saw rents fall, while 11.4% saw an increase. In second-tier cities, 82.4% saw a decline, 15.7% saw an increase, and 2.0% remained flat. Specifically, 19 shopping centers, including Tianjin Meijiang, Haikou Jiefang West, Nanchang Honggutan Central, and Qingdao Shibei CBD, experienced rent drops of over 1.0%. Another 25 shopping centers, such as Suzhou Guanqian Street, Shenzhen Nanshan Central, and Hangzhou Wushan, saw declines between 0.5% and 1.0%. Among the 13.7% of shopping centers with rising rents, Beijing Sanlitun and Chongqing Sanxia Square saw increases of 1.0% or more. Three shopping centers—Shenzhen Dongmen, Hangzhou Xixi, and Chongqing Daping—recorded gains between 0.5% and 1.0%. Wuhan Wangjiawan shopping center remained flat.

3. Supply Trends: Incremental Development Continues to Slow, Renovation Projects Account for 40% of New Openings, Commercial Land Sales Drop

Retail Real Estate Stock: The 15 key cities have nearly 2,550 operational projects, totaling about 220 million square meters. Shanghai has the largest stock, with nearly 430 projects covering approximately 33 million square meters.

New Retail Openings: In H1 2026, the total area of new retail projects in the 15 key cities fell by 9% year-on-year, with 40% of these being renovation projects. A total of 48 new projects opened, four more than in the same period last year, but the total area was about 2.94 million square meters. In first-tier cities, new opening areas dropped by 30% year-on-year, while second-tier cities saw a 35% increase. Shanghai had the largest new opening area at 800,000 square meters.

Commercial Land Sales: The volume of commercial land (pure commercial/office) sold in the 15 key cities has significantly declined over the past five years. In H1 2026, the total planned floor area of such land sold was 5.4 million square meters, a 34% drop year-on-year and only 25% of the peak in H1 2020. This suggests that the pace of new retail development is likely to continue slowing.