The Profit Effect Caused By The Operation Model Of Commercial Real Estate

Commercial real estate are large investment with high risk, high return whichneed operational management, so at the time of the project approval, people oftenarrange to do preliminary planning and design for their business model, to start thesubsequent construction and investment promotion work, we can said that theoperation of commercial real estate is a comprehensive work, which needs toconsider the volume, position, brand strategy and other factors. Furthermore, theoperation of commercial real estate is the key to making profit, so it is veryimportant.This paper takes Xiamen Special Economic Zone as example, combines withtheory of business communities and urban complexes which related to the planningof commercial real estate, and theory of marketing, consumer psychology whichinvolved to commercial real estate operation at the middle period, analyzes andcompares several business modes of commercial real estate from a unique businessperspective, and analyzes theoretically from positioning, brand investment,operation and management those processes mechanisms aspects; and then throughboth positive and negative cases to analyze the mechanisms and channels ofcommercial real estate business model to affect the profits, and to exploreadvantages and problems of the commercial real estate business model in Xiamen,and then to present some advices.Study showed that: the mainstream operation mode of commercial real estateinclude “only rent not sell”,“only sell not rent”,“rent and sell both available” and“order development model”; the mechanisms in operation mode of commercial realestate, which could affect profit, include financial leverage, investment promotionbrand setting, daily operation and management; the channels of affecting profitinclude management idea, finance, investment, coordination between merchants,developers and external policies, etc., throughout every stage of commercial realestate operations; the development of Xiamen commercial real estate has formedfour business communities----ZhongShan Road to Ferry business community, HeXiang West business community, Railway Station to LianBan businesscommunity, SM City Square business community, the business community present astrong hierarchy, involving the core business community, subprime businesscommunity and marginal business community which support each other, from theinside to outside of the island it experienced the transform from traditional businessmodel to emerging operation model; SM City Square, World Trade Mall, HuLiWanda Square are typical case of successful operation, the developers areforward-looking, and they pay attention to the overall operation, and they alwaystake “rent and sell both available” mode, and emphasized on the rational brandconfigurations and formats portfolio; MingFa Commercial Square, MingHui Squareare typical case of losing operation, and its developers use the way of doing realestate business to operate commercial real estate, there are so many problems forthose projects including inaccurate positioning, the lack of business planning,oversupply, sales-oriented business model, the imbalance of commercial distribution,the imbalance of commercial type and format, operation failed to adjust and changethe mode of operation, homogenization category, etc.Based on the perspective that the commercial real estate operation model affectprofit, combining with successful and losing operations cases in Xiamen commercialreal estate, this paper point out suggestions for the improvement and optimization ofoperation model of Xiamen commercial real estate, which include: doing accuratepositioning for the commercial real estate based on overall urban planning;emphasizing on rational planning, investment, the ratio of commercial type andformat at early stage of the development; choosing a reasonable pattern ofdevelopment, strengthening the operation management, paying attention to thedevelopment of professional team; strengthening finance operations management incommercial real estate, expanding financing channels; and government have toactively intervene, introducing some appropriate measures and regulations to leadthe industry development and prosperity, and so on.I hope this article has certain positive significance for the improvements ofoperations and management model of commercial real estate, and truly hope it canpromote the development of commercial real estate industry and enterprises.