Enlightenment 1: The rise and fall of commercial real estate projects is not directly proportional to the development of the city, but the decline of the South Tower is synchronized with the rapid development of Guangzhou's economy. From 1990 to 1995, the South Tower was in its heyday. At this time, Nanta has become one of the top ten retail enterprises in China, with annual sales reaching more than1300 million yuan. However, since 1996, the turnover of the South Building has declined and losses have occurred. Although the asset reorganization was approved by the municipal government, the operation was in trouble since then. Since 1996, Guangzhou's national economy has entered a period of rapid development. In the case that the operating conditions of the South Building are deteriorating and losing money year after year, the annual GDP growth rate of Guangzhou remains above 13%, and the per capita annual income of citizens increases above 9%. In 2003, the total sales of the South Building fell to more than 600 million yuan. In the national peer ranking, it was ruthlessly squeezed out of the top ten, ranking only 57 th. Facts tell us that as a specific commercial real estate project, its income will not be directly proportional to the urban economic development. Some commercial real estate investors regard the total savings of a city's residents as an important reference coefficient for investing in a commercial real estate project and the economic wealth of a city as a reference object. This investment decision is very dangerous. Revelation 2: Commercial real estate projects believe that the advantages of urban commercial centers have entered the new century. There are two typical phenomena in the field of commercial real estate in Guangzhou: one is the gradual decline of the South Building with a history of more than 80 years, and the other is the gradual rise of Tianhe City Department Store in Guangzhou. At present, the occupancy rate of Tianhe City Department Store is 96.7%, and the average daily passenger flow exceeds 6,543,800+person-times, which has become a hot spot for citizens to shop and relax and tourists to visit. Since 200 1, the annual rent of its shopping malls has been stable at around 200-300 million yuan. This is closely related to the eastward movement of Guangzhou city center. At that time, the area where Nantah was located was the commercial center of Guangzhou, with a sea of people. Many people in Guangzhou are proud of shopping in the South Building. At the end of last century, the center of Guangzhou moved eastward, and the area with a radius of about 3 kilometers around tianhe sports center became the business center of Guangzhou and a new business center with high-grade office buildings, which became the first choice for leisure shopping for Guangzhou people and tourists at home and abroad. Facts have proved that large-scale commercial real estate projects always change with the evolution of urban centers. Commercial real estate investors can only make correct investment decisions if they are based on the current situation, look at the future of urban planning and development, and grasp the direction of urban central areas. Especially at present, many cities in China are engaged in the construction of new urban areas, which is particularly worthy of attention. Revelation 3: Commercial real estate projects believe that the decline of South Tower is closely related to Guangzhou's increasingly prosperous and congested cities. It turns out that the South Building is located in the traffic center of Guangzhou, and the Pearl River Pier is close at hand. Land and water transportation connects Guangzhou with Nanhai, Panyu, Dongguan and other places. With the construction of bridges and expressways in the Pearl River Delta, cars have replaced water traffic, passenger ships on the Pearl River have stopped working, and urban traffic is congested. Located in the surrounding area of the South Building in the old city, it became the first area where vehicles were difficult to pass. Shopping in the south building, there is no parking space, and all the roads around the south building are subject to one-way traffic control. When citizens get off the bus, they have to make a big detour to find the station to go back. On the contrary, Tianhe District is the gathering area of Guangzhou and the Pearl River Delta. Tianhe City Square is surrounded by the ring road, and there are more than 60 bus lines standing in front of the square. The square is adjacent to East Railway Station in the north, Guangzhou Economic Development Zone in the east and Guangzhou Old Town in the west. The entrance and exit of the first-line subway goes directly to the basement of the square, and there are thousands of parking lots on the basement of the square, which is an essential inspiration for large shopping centers. Fourth, commercial real estate projects think that the consumption environment is superior. The South Building is located in Xidi, the most prosperous place in Guangzhou. South of the Pearl River, west of Shamian White Swan Pond, the geographical environment is superior. Many people came all the way to see the tallest building in Guangzhou at that time. Later, in order to alleviate the traffic pressure, a viaduct was built here, and many residents nearby moved here. The whole street is covered by a reinforced concrete behemoth, and it is dark during the day. When I come here, my mood is hard to be as clear as the sunshine outside. Tianhe City Department Store in the new urban area is a good area for greening and beautifying. The square in front is open and beautiful, sunny and full of flowers, so citizens can take photos and play. Old people and young people are very happy. In addition, as a commercial building designed and built more than 50 years ago, the South Building is inherently narrow and unreasonable in layout, and it is difficult to form an open lobby and elegant interior decoration like the new shopping center. Revelation 5: Commercial real estate believes in the rules of the market economy. The manager of a department store in Nanlou said that "the survival of the fittest, Nanlou can't adapt to the development of the market and can't recover the dilemma of decline, so we can only admit and accept this reality". This is the mature thinking of an old businessman. An old brand is the history of a city. The South Building, with a long history, was once the spokesperson of Guangzhou's economy. Times are changing, and people's consumption concepts are also changing. Time-honored brands must maintain their charm among consumers from the day they are born. If they can't keep up with the times, they can only be ruthlessly eliminated by the market. Although Nantah introduced foreign capital, its state-owned enterprise management and operation mode has not been fundamentally changed for a long time, and it missed the opportunity to use foreign capital to change its own mechanism and management mode. The heavy historical burden and high operating costs make the South Building difficult to maintain in the market competition. Revelation 6: Commercial real estate believes in the best combination of formats. After the mid-1990 s, Guangzhou Nanda faced an unfavorable environment of being attacked from three sides: first, foreign retail giants began to lay out in the Pearl River Delta; Second, foreign capital and local small and medium-sized supermarkets have fully entered the originally dominant space of the department store industry; Third, warehouse stores, shopping centers, and countless specialty stores, convenience stores, grocery stores and other western countries have almost accumulated in front of the traditional department store industry like Nanda. People's awareness of nearby consumption, experience consumption and fashion consumption has increased. Under such circumstances, Nanlou Department Store can't get rid of the traditional business model and format combination, and will inevitably be forgotten by consumers.