Prime retail rents improve in 1Q2022 amid consumer rebound
Dickson Koh predicts merchants will be much more bullish about their expansion programs, which would certainly present even more help to a stronger leasing interest. Decreased vacancy prices amid limited new supply ought to also assist a progressive rehabilitation of retail rentals from 2H2022. Yet persistent inflationary pressures and also workers shortages may toughen up development.
“With footfall bouncing back firmly in the Orchard Road shopping belt and the CBD, along with shopper traffic in the suburbs staying tough, this clearly indicates that the bricks-and-mortar business is still pertinent, even as on the internet buying gets purchase,” says Koh, associate supervisor of research at Colliers Singapore.
Prime retail leas in rural as well as Orchard Road places edged up by 0.7% as well as 0.4% respectively in 1Q2022, according to a report by Colliers. This is an enhancement from 4Q2021 which saw prime country rents up by 0.5% q-o-q while Orchard Road retail rentals partially enhanced by 0.1% q-o-q.
Looking forward, Colliers assumes an extra supple retail probability and also occupier sales on the back of raising buyer step together with the lifting of traveling curbs as well as reliable regulation measures. “This augurs well for retail operators, specifically those located in the Downtown Core as well as Orchard,” claims Koh.