Prime retail rents improve in 1Q2022 amid consumer rebound
“With footfall bouncing back highly in the Orchard Road buying belt and the CBD, as well as buyer traffic in the suburbs remaining resistant, this plainly indicates that the bricks-and-mortar market is still pertinent, also as online shopping obtains purchase,” expresses Dickson Koh, associate director of research at Colliers Singapore.
Looking ahead, Colliers projects a more resilient retail forecast and leaseholder sales on the back of raising buyer footfall and even the lifting of traveling curbs as well as secure regulation procedures. “This augurs well for retail operators, most especially those nestled in the Downtown Core and also Orchard,” says Koh.
He hopes merchants will certainly be a lot more bullish about their growth programs, which would certainly present further support to a stronger leasing demand. Lesser vacancy fees in the middle of limited brand-new supply ought to additionally assist a progressive rehabilitation of retail leas from 2H2022. However persistent inflationary pressures as well as workers shortages may mold growth.
Prime retail rentals in country as well as Orchard Road areas edged up by 0.7% and 0.4% specifically in 1Q2022, according to a review by Colliers. This is an upgrading from 4Q2021 which saw prime suburban rentals up by 0.5% q-o-q while Orchard Road retail rents somewhat doubled by 0.1% q-o-q.