The End of Investment Attraction is ‘Shared Values

Investment Attraction: What Exactly Are We “Attracting”?When it comes to this question, many industry leaders could offer me an answer. Undoubtedly, for commercial real estate, investment attraction—especially retail attraction—is about communicating internally and externally to bring the right brands, merchants, and partners into the project. To put it simply, investment attraction is about filling up empty commercial streets, shopping centers, office buildings, and even industrial parks with suitable tenants.From a traditional perspective, the main task of investment attraction is to fill the space. The Key Performance Indicator (KPI) is considered complete when the space is filled, the commission is earned, and the project can move on to the next. But the problem is, the traditional route of investment attraction seems to be becoming harder to follow. There are two reasons for this.First, with the rapid turnover development of real estate in recent years, shopping centers and commercial streets have sprung up everywhere like mushrooms after the rain, dramatically increasing the stock of commercial properties. However, the “content”—the brands, merchants, etc.—hasn’t grown at the same speed. The content can’t keep up with the expansion of space.Secondly, compared to the highly segmented and diverse content, commercial properties have very little differentiation. You can still see countless shopping centers that look almost identical.

Without the logos, it’s hard to tell one from another.As a result, traditional investment attraction has entered a “red ocean” mode. It’s all about competing on conditions, teams, commissions—actively going out to hunt for brands. Not only have normal chain brands been contacted multiple times, but even small local shops have been approached again and again.What does this feel like from the merchant’s perspective? Overnight, their value seems to have skyrocketed. Investment agents are constantly approaching them, asking if they want to go to one place or another, presenting beautifully crafted investment brochures, offering various conditions to lure them in. For merchants, this is a good thing—they have so many locations to choose from.But the core issue is: What happens once they sign? Can the business succeed after the deal? Can their new store continue to operate smoothly?In this situation, frontline investment agents often struggle to give a clear answer. They may resort to the typical sales pitch: long-term operations, star teams, surrounding potential… But today’s merchants are not easily swayed by such rhetoric. In most cases, merchants are more knowledgeable about operations, products, and markets than investment agents. They might already have a clear understanding of the surroundings before the agent even arrives.

So, what should investment agents do at this point? Should they just keep acting as a middleman, continuing the communication, sweeping the streets for brands? Or is there a better way?Looking at the market, many projects and areas don’t struggle with investment attraction. For example, when I accompanied a brand specializing in image management from another city to Chengdu to scout locations, they asked specifically for a spot near Taikoo Li, a landmark commercial area in the city. It was tough to find, and the brand itself didn’t have strong advantages. The key was their customer base had strong community loyalty, which guaranteed foot traffic almost anywhere. But in the end, they chose a hard-to-find third-floor spot, which had relatively strict conditions. Yet, they were still eager to move in. This makes sense—Taikoo Li is Chengdu’s leading project, but the brand wasn’t lacking in traffic. What they wanted was the “vibe” of Taikoo Li.Similarly, some brands from Shanghai, when they first arrived in Chengdu, aside from the requirements for surrounding people and location, wanted a “community feeling.” They wanted a street that had enough “lively atmosphere,” but not too “grassroots.” They needed a vibe that allowed for outdoor seating and “independent creativity.” They were highly averse to traditional shopping centers.In the end, I recommended locations like Tongzilin in the south of the city, the Nine Courtyards, and Tianfu Changcheng.

Of course, I also encountered a wedding dress custom shop with exceptional quality. They spent considerable time visiting commercial buildings and streets but ultimately chose a small independent courtyard in Sansheng Township. While not much foot traffic, it offered a tranquil, independent atmosphere—an unconventional choice, but one that aligned with their brand’s needs.From a traditional viewpoint, these merchants’ operations and product quality are excellent. They have their own unique flair, a ready customer base, and the ability to meet any terms. They’re the kind of “first-store brands” that most projects dream of attracting. Yet, without exception, they all rejected traditional shopping centers. After some thought, they chose regions that aligned with their own vision.This made me reflect: What exactly is attracting them? Is it the location? By this logic, there are plenty of prime locations in Chengdu, but many are underperforming despite great locations. Is it the operations? Not necessarily. Many brands have thrived in street-level shops with minimal daily operations. So, what is it?When I first entered this industry, I asked my senior mentors what the challenge of investment attraction truly was. They told me that sometimes, it’s not difficult—after all, the market is flooded with brands, and it’s always possible to fill up a commercial space. But whether the business will thrive is another matter. Sometimes it’s difficult because, compared to finding brands, the real challenge is understanding the right kind of brand to seek.

These brands are also actively looking for projects like yours.The ideal investment attraction is based on mutual understanding and smooth cooperation, not on persuasion, teaching, or manipulating a brand into signing. Investment attraction is like a romantic relationship—it needs mutual attraction. It’s not about compromising; it’s about ensuring the brand knows that they’ll be better off with you, rather than leading to a “divorce” after “marriage.”Particularly when dealing with brands that have strong internal value, clear operational logic, and built-in customer bases—brands that the project is truly craving. These brands require not only the basic commercial conditions like location, crowd, and traffic but also need a “philosophy” that aligns with their own. You could think of it as a match of values, culture, and awareness—a “shared worldview” that amplifies their own unique atmosphere and complements the project.Brands that want to go to places like Taikoo Li, for example, not only care about foot traffic and location but are also attracted to the quality, youthfulness, and cosmopolitan vibe Taikoo Li represents—vibes that have been nurtured by years of quality operations. Brands seeking a lively street scene want a more “relaxed” atmosphere to convey their everyday, down-to-earth culture, yet not too “grassroots.” Similarly, the wedding dress brand in Sansheng Township needs a small, independent “outdoor” space where customers can immerse themselves in the experience.

These regional tags—street spirits, cultural philosophies—not only attract customers but also attract brands, creating a mutual perception.Now, the most difficult question arises: How can we build and establish such a “philosophy,” especially for new projects? This is where I began to understand certain project approaches. Why did TX Huaihai in Shanghai go all out in the early stages to collaborate with artists and like-minded brands for exhibitions, even hiring celebrities as cultural directors? They were constantly releasing a message: TX Huaihai isn’t just a spot on Huaihai Road—it’s a cultural landmark for the mainland. It wants to become China’s Harajuku. And indeed, it succeeded. Regardless of how industry insiders view it, the public sees it as trendy, and many brands eager to target youth culture are willing to pay for events and collaborations there.Why does Tianmu Li insist on hosting various exhibitions and collaborating with brands like T-Naga and creating “content spaces” like art galleries, live houses, and theaters? Because they also want to establish the idea that they are a cultural and design landmark for Hangzhou and the Yangtze River Delta.Why did Shenzhen Wenheyou openly recruit a “content guru,” a “city brand officer,” and other cross-disciplinary talents, aiming to emulate Netflix and Disney in curating their brand direction?

They understand that philosophy is more enduring and impactful than space.These projects are all new and don’t have a long history. But they’ve quickly built cultural and philosophical “high ground,” not just relying on unique spaces but also leveraging exhibitions, daily output of graphics and videos, and even social communities to effectively communicate their desired brand direction. These projects are not only hot spots in their cities but also popular in the industry for investigation. However, what really makes them worth studying is not the space they offer but the philosophy they communicate.You can hire top designers, find the best locations, and try everything to attract brands, but the process of building a strong philosophy—the seemingly “abstract” things—is difficult to replicate. It requires time, thought, and persistence.Therefore, what is the true meaning of “investment attraction”? In my opinion, investment attraction should be about the complementarity and alignment between the space, the brands, and the customer base—a shared vision that creates a “sanctuary” for a lifestyle people can immerse themselves in. Investment attraction should be a collaboration between the project and the brand, creating a shared aesthetic and worldview that captures consumers’ time and attention, allowing them to truly experience life.Do you agree with this perspective?