{"id":6198,"date":"2016-06-13T02:37:21","date_gmt":"2016-06-12T18:37:21","guid":{"rendered":"https:\/\/www.99.co\/blog\/singapore\/?p=6198"},"modified":"2022-07-01T04:02:37","modified_gmt":"2022-06-30T20:02:37","slug":"retail-malls-experiencing-rent-slide","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/retail-malls-experiencing-rent-slide\/","title":{"rendered":"Why are retail malls experiencing a rent slide?"},"content":{"rendered":"
<\/div>

Less retail spending and vacant shopfronts have depressed rents in Singapore’s retail malls, both in Orchard\u00a0Road and suburban areas, a new report found.<\/p>\n

\"Fall
Fall in rents for retail malls stem from changes in consumer behaviour, such as preference for online shopping<\/figcaption><\/figure>\n

Average prime retail rents in Orchard Road shed 1.1 percent from the first quarter, to $32.50 per\u00a0square foot per month in the second quarter, a report by CBRE showed. When compared to the\u00a0same time last year, rents had dropped by 4.4 percent.<\/p>\n

Suburban malls saw their rents fall by 0.7 percent to $29.45 per square foot per month in the\u00a0second quarter. This was a 2.8 percent fall from a year ago.<\/p>\n

\u201cThe market is particularly challenged by a mismatch of demand and supply at this point in the\u00a0cycle,\u201d said Mr Desmond Sim, the company’s research head for Singapore and Southeast Asia.<\/p>\n

Well-located suburban malls like Compass One in Sengkang, which had a 90 percent pre-commitment from tenants, are the few exceptions, he added.<\/p>\n

Singapore’s retail sales index dropped by 4.3 percent in March from a year back. Overall retail\u00a0vacancy rates stood at 7.3 percent in the first quarter, a 0.1 percentage point increase from the end\u00a0of last year, according to official statistics.<\/p>\n

Orchard Road was badly hit by vacancies, that amounted to 8.8 percent in the first quarter \u2013 its\u00a0highest in five years. Perhaps tourist arrivals are one of the few bright spots, having grown by 13.8\u00a0percent in the first quarter from a year ago.<\/p>\n

Given this backdrop, landlords should consider linking the rental model to business turnover, so\u00a0they can step in and help tenants succeed, said Mr Alan Cheong, Savills Research senior director for\u00a0Singapore.<\/p>\n

\u201cThe old school way of believing… asset enhancement initiatives may bring about a revival of the\u00a0mall may need to be supplemented by their ability to think like a new school tenant and work for\u00a0their success,\u201d he said.<\/p>\n

Visit The Straits Times<\/a> for the full report.<\/p>\n","protected":false},"excerpt":{"rendered":"

Less retail spending and vacant shopfronts have depressed rents in Singapore’s retail malls, both in Orchard\u00a0Road and suburban areas, a new report found. Average prime retail rents in Orchard Road shed 1.1 percent from the first quarter, to $32.50 per\u00a0square foot per month in the second quarter, a report by CBRE showed. When compared to…<\/p>\n","protected":false},"author":17,"featured_media":54314,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","_lmt_disableupdate":"","_lmt_disable":"","_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[53653,57131,53590],"tags":[],"persona":[],"class_list":{"2":"type-post","10":"entry","11":"has-post-thumbnail"},"acf":[],"yoast_head":"\nWhy 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