Prime retail rents improve in 1Q2022 amid consumer rebound
Dickson Koh presumes retailers will certainly be extra favorable regarding their growth strategies, which would certainly bring additional assistance to a stronger leasing need. Lower openings prices in the middle of restricted brand-new supply must additionally sustain a gradual comeback of retail rents from 2H2022. Yet consistent inflationary pressures and also workforce scarcities might stiffen improvement.
Looking forward, Colliers projects a much more buoyant retail outlook and also lessee sales on the back of boosting buyer footfall and the lifting of traveling curbs and also secure administration actions. “This augurs well for retail operators, specifically those found in the Downtown Core and also Orchard,” says Koh.
“With step recuperating tightly in the Orchard Road shopping belt as well as the CBD, together with shopper traffic in the country areas maintaining resilient, this plainly shows that the bricks-and-mortar store is still appropriate, also as on-line shopping gets traction,” mentions Koh, associate director of research at Colliers Singapore.
Prime retail rents in country including Orchard Road spots moved up by 0.7% and also 0.4% specifically in 1Q2022, according to a study by Colliers. This is an enhancement from 4Q2021 which saw prime rural rentals up by 0.5% q-o-q while Orchard Road retail leas partially increased by 0.1% q-o-q.