On September 11, the 2025 Global Headquarters Economy Conference and China Building Economy Beijing Forum was held in Beijing. The event was organized by the World Trade Network Alliance and China Industry Development Promotion Association. Huang Liping, President of CEOVU Group, was invited to attend the forum and deliver a keynote speech.
According to Huang Liping, the recent Central Urban Work Conference made an important judgment that urban development is transitioning from a phase of large-scale expansion to a stage focused primarily on improving quality and efficiency of existing assets.
"Whether it's transforming urban development methods or changing urban development dynamics, whether it's coordinating urban renewal with structural optimization or integrating technological innovation with industrial innovation, the fundamental focus of building economics lies in industrial upgrading," Huang stated.
**Breaking Through and Evolution**
Huang explained that "breaking through" means overcoming the difficulties faced by building economics as it enters the inventory era, particularly addressing the dual decline in occupancy rates and rents. The core challenge is effectively resolving the inherent contradictions among multiple objectives.
"Evolution" involves constructing a new pattern for high-quality development of building economics, with the core being finding the greatest common denominator among multiple entities and establishing optimal coordination mechanisms.
**The "Zero Rent" Phenomenon**
This year, starting from Shenzhen, major cities with developed building economies have introduced "zero rent" policies in response to economic downward pressure and the persistent dual decline in occupancy rates and rents. This unprecedented phenomenon in building economics is gradually expanding.
Huang emphasized this is not a "black swan" event but rather a collective outbreak of bubbles formed through long-term accumulation of supply-demand contradictions in buildings serving industrial economies.
**The "Impossible Triangle" Theory**
Drawing from the famous "impossible triangle" theory in economics proposed by Mundell and systematized by Krugman, Huang applied this concept to analyze industrial park development. He concluded that industrial development goals, real estate return objectives, and building utilization rate targets cannot be achieved simultaneously.
The zero rent phenomenon represents an economic behavior that prioritizes industrial development and building utilization rate goals while actively abandoning real estate return objectives.
**Multi-Target System**
Huang outlined 15 objectives in building economics, including technology innovation ecosystem cultivation, building investment returns, industrial innovation, industrial structure optimization, high-end talent aggregation, economic contribution, employment increase, livelihood improvement, low-carbon development, environmental governance, intelligent transformation, quality enhancement, function improvement, social value, and building utilization rates.
He identified three core objectives: 1. **Industrial Development Goal** - The fundamental objective and source of momentum 2. **Building Investment Return Goal** - Essential for real estate finance 3. **Building Utilization Rate Goal** - More valuable than rental rates from a sustainable perspective
**Multi-Entity Collaboration**
Building economics requires participation from multiple entities: - Local governments providing policy formulation and key resource allocation - Construction parties (building asset investors and owners) - Operation parties with professional full-cycle management capabilities - Ecosystem builders including industry alliances, platform institutions, and leading enterprises - Service providers offering property management, accommodation, and dining services - Users (tenant enterprises)
**Sustainable Development Path**
Huang emphasized that sustainable development of building economics requires market-based competition while avoiding disorder. Competition should focus on industrial ecosystem development rather than resource advantages or price wars.
"Building economics modernization requires more professional industrial ecosystem builders to effectively collaborate with local governments and park investment entities," Huang concluded.
The key to success lies in recognizing multi-target relationships, grasping core objectives, actively expanding new business models, patiently cultivating innovation ecosystems, and creating attractive, resilient, and sustainable value propositions.