Real estate developers struggle to secure long-term tenant commitments before construction completion

Chinese real estate developers face cash flow uncertainty and construction financing risks because tenants won't commit to leases until buildings are completed. Developers need upfront capital commitments from future tenants to fund construction, but current leasing practices only formalize agreements after projects are finished, creating a 10-15 year gap between construction start and secured rental income. This forces developers to rely on expensive debt financing or pre-sales that may not materialize.