The coordinated development of Beijing-Tianjin-Hebei, a pivotal national strategy, plays a crucial role in driving China’s economic growth. A strategic priority within this framework is the systematic redistribution of non- essential functions from Beijing, forming the core of regional development efforts. Previous studies have predominantly focused on Beijing, overlooking surrounding cities. This paper, employing principles from new economic geography, integrates Agent-Based Modeling (ABM) to establish a multi-regional spatial analysis framework. Key factors analyzed include monopolistic competition, agglomeration effects, scale economies, transportation costs, and market integration. The study reveals several significant findings. Firstly, infrastructure improvements in medium and small cities facilitate the relocation process, albeit subject to a “threshold effect” that necessitates surpassing specific developmental milestones for effective relief. Secondly, enhancing transportation connectivity between medium/small cities and the central metropolis enhances relocation efficiency. Thirdly, fostering innovation to diversify local products and establishing an open market system promotes high-quality relocation and agglomeration through competitive market mechanisms. Lastly, temporary subsidies to enterprises and talents stimulate market expansion in medium and small cities, encouraging the flow of businesses and population.