From 2009 to 2013, the slowing growth rate of commercial property sales and the accelerating vacancy rate of commercial properties are closely related to the dramatic growth of e-commerce in China.

We found that different forms of commercial properties–supermarkets, department stores and shopping centers–are differently affected by the rise of e-commerce.

In general, supermarkets are not severely affected by e-commerce. Due to the simple tenant mix and undiversified commercial activities, department stores are vulnerable to e-commerce. Since the physical retail shops become less attractive under the influence of online shopping, shopping centers tend to make adaptive changes through altering their tenant mix, i.e., reducing the amount of retailing space and adding more entertainment and catering services.

Due to the respective advantages and disadvantages associated with online and offline shopping, physical stores will not be completely eclipsed by virtual shopping. There are plenty of opportunities that e-commerce could serve as a complement to offline shopping.