Prime retail rents improve in 1Q2022 amid consumer rebound
“With step recuperating tightly in the Orchard Road shopping belt as well as the CBD, as well as buyer traffic in the suburbs continuing to be tough, this clearly signifies that the bricks-and-mortar business is still appropriate, also as on-line buying gains purchase,” states Dickson Koh, associate supervisor of research at Colliers Singapore.
He expects stores will be much more favorable regarding their expansion programs, which would present more assistance to a better leasing interest. Decreased vacancy fees amidst limited brand-new supply need to also support a gradual rehabilitation of retail leas from 2H2022. However consistent inflationary pressures as well as labor force lacks may temper development.
Looking in advance, Colliers projects a more resilient retail outlook as well as boarder sales on the back of increasing shopper footfall and even the lifting of traveling curbs and also harmless regulation actions. “This augurs well for retail providers, especially those located in the Downtown Core and Orchard,” states Koh.
Prime retail leas in rural along with Orchard Road locations moved up by 0.7% as well as 0.4% respectively in 1Q2022, according to a review by Colliers. This is an improvement from 4Q2021 which saw prime rural rents up by 0.5% q-o-q while Orchard Road retail leas marginally improved by 0.1% q-o-q.
