In an Era of Market Saturation, How to Unlock New Growth Opportunities?

Competition among commercial properties is shifting from a battle over physical space to a contest of value density and scenario density. In the era of standardization, brands tend to be bundled and follow predictable patterns. The content mix within a property is relatively easy to anticipate, and the “input conditions” are clearer and easier to replicate. However, in today’s world, where the novelty period of experiences is increasingly short, unpredictable market environments and unconventional consumer behaviors mean that the quality of a commercial property cannot—and need not—be judged definitively in the first few years after opening. Only dynamic content and evolving forms of expression can sustain foot traffic and engagement offline.Therefore, in a saturated market, flexibility and adaptability may prove more practical than a set of rigid “productized standards.” The value of some properties is cultivated over time. Revisiting untapped potential spaces and expanding existing assets can be considered one of the most cost-effective strategies—though it also tests operational expertise to the fullest.

On June 27 of this year, the “CICC China Green Development Commercial REIT” officially listed on the Shenzhen Stock Exchange. Its underlying asset is the Lingxiu Cheng Guihe Shopping Center, located in Shizhong District, Jinan. This project represents the first public REIT investment in consumer infrastructure by a central state-owned enterprise under Guoxin Asset, and is considered a benchmark initiative for helping state-owned enterprises revitalize high-quality existing assets, forming a virtuous cycle of “optimizing existing stock to promote incremental growth.” The data disclosed in the prospectus and the final valuation reflect the deep operational experience accumulated by this commercial complex over more than a decade.From proactively negotiating with tenants to creating in-house amenities such as a “front-door” sports park and wellness station, the focus has shifted away from the old mantra of “location is king.” Asset value assessments are no longer limited to external conditions. Especially in non-first-tier cities, where commercial development progresses more slowly, oversupply is often the norm. For Lingxiu Cheng Guihe, located outside the core business district of Jinan, the strategy was not to “wait for the commercial district to mature,” but to take proactive steps and position itself as a regional community center.

By targeting middle-class families as its foundational audience and expanding attention to community culture and broader quality-of-life needs, Lingxiu Cheng Guihe has developed a nuanced understanding of its positioning. It fosters a mutually shaping relationship with local residents. In a rapidly changing market, timely adjustments to tenant composition are crucial, testing both sensitivity and execution capabilities.Within a five-kilometer radius, there is no competing shopping center exceeding 100,000 square meters. Over the past few years, Lingxiu Cheng Guihe has continually evolved in alignment with local residents’ needs—from brand upgrades to zoned business adjustments—staying one step ahead in responsiveness.In earlier years, traditional educational institutions faced closures due to policy changes. In response, Lingxiu Cheng Guihe shifted from intensive subject training to interest-based education, promoting creativity and scientific inquiry for the next generation. This approach laid the foundation for the creation of its “Lingxiu Academy” children’s education district.As brands become increasingly selective, competition intensifies. Rather than succumbing to anxiety over resources or capital, the focus is on skillfully playing the cards at hand.

By integrating brands such as Cold Lake Lab and Tongcheng Little Task Force, “Lingxiu Academy” has become a gateway for local youth to engage with science, cultivate scientific curiosity, and improve physical fitness—helping children fall in love with learning, remember it, and return frequently.On the other hand, the mall has begun to capture emerging trends. Beyond the essential community retail functions, it has added new service-oriented spaces such as fitness, nutrition, beauty, and light medical care, creating a “wellness hub” right at residents’ doorsteps. From themed zones to offline events, every initiative reflects the operating team’s clear leasing strategy, agile execution, and rapid adaptability.Today, Lingxiu Cheng Guihe continues to proactively launch and implement new initiatives, organizing brand clusters, including pet-friendly facilities and more. By layering scenarios and variables, the mall brings its offline space truly “to life.

” From a commercial design perspective, once capital has been allocated and the physical layout cannot be changed, effective operations should focus on uncovering underutilized areas and transforming “dead space” into dynamic, engaging experiences.External plazas, large atriums, transitional corridors, and even rooftop areas—these “redundant spaces”—have all been converted into activity zones: the external plaza hosts removable cage-style soccer fields and roller-skating parks; the main atrium serves as a venue for small-scale competitions; and the high-ceiling area adjacent to the indoor skating rink accommodates a 12-meter climbing wall. This “vertical + horizontal” multi-dimensional sports layout maximizes the use of every inch of space, enriches the visual experience of visitors, and provides a practical approach to generating incremental value within existing stock, visibly enhancing the mall’s sales per square meter.

By incorporating sports elements, Lingxiu Cheng Guihe transforms low-efficiency public areas into high-value “active zones.” The more pervasive virtual experiences become, the more irreplaceable the sense of physical presence in offline spaces is—this is the core appeal of sports-based activities. They offer a tangible, engaging, and participatory touchpoint that draws consumers back to physical spaces.By cleverly embedding sports into shopping pathways, Lingxiu Cheng Guihe has repositioned itself from a mere consumption destination to a vibrant hub for family activity. From large-scale facilities like indoor heated swimming pools and international-standard ice rinks to niche venues for interest exploration, such as indoor ski simulators, professional archery ranges, and fencing clubs, the mall has built a comprehensive sports matrix spanning all ages and interest levels. Here, strangers meet through impromptu games, families strengthen bonds through shared activities, and young people find like-minded communities. Visitors experience spontaneous encounters, self-directed participation, and genuine emotional connections.The value of experiential formats goes far beyond the rent or event registration fees they generate; they can drive the renewal and revitalization of other brands within the mall, creating a significant synergistic effect.

Even under today’s stringent brand selection criteria, the mall has attracted a substantial number of flagship stores in a non-core business district: internationally renowned sports brands such as FILA, Li-Ning, New Balance, Nike, and Adidas, alongside domestic and international names like Onitsuka Tiger, Under Armour, Bosideng, Anta, and PUMA. Lingxiu Cheng Guihe has strategically allocated its “prime ground-floor” locations to brands that align closely with the mall’s overarching theme.By delivering positive value and building emotional connections with residents, commerce increasingly requires a “long-termism” perspective. After all, a three-day viral sales spike cannot sustain an entire year. Most brands have already grown more rational toward short-term traffic generated during the mall’s pre-opening or cultivation phases. They are now evaluating whether a project can deliver steady, long-term foot traffic.The strategy of “bringing sports into retail and community events” has been Lingxiu Cheng Guihe’s most persistent exploration and remains a key method for maintaining mall vitality. Frequently initiating and hosting community-focused events allows young families and youth to find both outlets for healthy lifestyles and sources of spiritual nourishment within this environment. This approach keeps the mall’s energy alive and relevant.

Since 2021, from the “Wangyue · Floating Forest” themed scenario to 2022’s “Everything Grows · Natural Resonance” eco-themed exhibition, Lingxiu Cheng Guihe has consistently emphasized environmentally friendly lifestyles and being “kind to the Earth.” Each thematic initiative calls attention to community and city development, encouraging consumers to enjoy immersive natural experiences alongside their shopping activities.Beyond green operations, the mall has also led in green infrastructure. On the fifth-floor platform and above the cinema, the project installed photovoltaic solar power facilities, making it Shandong Province’s largest commercial complex solar project and China Green Development Group’s first. With an installed capacity of 1.2MW, it can generate 1,265,500 kWh of clean green electricity annually. As early as 2021, the office section, including the LuNeng International Center 5A-grade office tower, achieved LEED Platinum certification. The following year, Lingxiu Cheng Guihe itself, as a commercial complex, received the first batch of “Excellence in Low-Carbon Operation” certification nationwide.

From a corporate branding perspective, the mall’s scene creation, sports event hosting, and exploration of green energy reflect the underlying “DNA” of both the operating team and China Green Development Group. In the commercial sector, “companionship” carries a broader meaning—it can encompass a series of services, consumption behaviors, or interest-based experiential processes. Visitors here are not just observers or participants; they are actively involved in shaping and experiencing the space’s evolution.For a mall in a developing district, the presence of a large supermarket can help activate some nearby foot traffic in the early stages, but it alone cannot keep a 160,000-square-meter complex fresh and vibrant over ten years. High-end malls often emphasize “style,” providing experiences beyond the ordinary, whereas community shopping centers often rely on “relationships” as their guiding principle. From store layout and tenant mix restructuring to small, continuous spatial innovations, Lingxiu Cheng Guihe consistently surprises and delights visitors, shaping shopping habits and consumer behaviors.Having grown alongside the southern district of Jinan, Lingxiu Cheng Guihe has gradually cultivated a distinctive regional character—optimistic, lively, yet steady and pragmatic.