A Research On The Business Model Of China’s Commercial Real Estate Based On The Value Chain Theory

The development of real estate industry has great influence on national economy and people’s life, it is one of the national pillar industries. As one part of real estate, the commercial real estate is developing very fast these years. As the residential property has been strictly controlled by the government, the development of commercial real estate became much more rapid in recent years. However there are still many problems during their developing process, which will further affect the healthy development of China’s commercial real estate. This paper starts from the theory of value chain and systematically analyzes the business models of China’s real estate.This paper has four parts:first, it describes the main characteristics, development trends of commercial real estate and the business model of commercial real estate; then, this paper establishes the value chain of commercial real estate, and describes the participants of the value chain in detail, then analyzes each participants’behaviors and the relationships among them. The third part introduces three business models of the commercial real estate in our country, they are "pure sale","not only for sale" and "sale and rental", in this part, it fully analyzes the mechanisms of this three models. At the end of the article, this paper uses cases to demonstrates this three models. At last, the article proposes proper model of commercial real estate that fit the future circumstances in China.This paper has three main points. First of all, the participants involved in the value chain of commercial real estate include government, developers, investors, businessmen, operators and consumers. Form left to right, it is a transfer process of housing property, while form the right to left, it is a anti-delivery process of the value formation. Secondly, commercial real estate business model has mainly been determined by real estate developers’financial strength and experience of commercial operations. Thirdly, commercial business is the core processes for the formation of value in commercial real estate. Therefore, in the development of commercial real estate, we should strengthen the efforts of business operations.