Prime retail rents improve in 1Q2022 amid consumer rebound

Prime retail leas in suburban including Orchard Road spots moved up by 0.7% and 0.4% respectively in 1Q2022, according to a record by Colliers. This is an upgrading from 4Q2021 which saw prime rural rents up by 0.5% q-o-q while Orchard Road retail leas partially raised by 0.1% q-o-q.

Dickson Koh anticipates retailers will be extra bullish concerning their expansion plans, which would present additional service to a stronger leasing need. Lower vacancy rates in the middle of restricted brand-new supply should additionally maintain a progressive recovery of retail rents from 2H2022. But persistent inflationary pressures and workers lacks might set improvement.

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Looking in the future, Colliers expects a more buoyant retail probability and also renter sales on the back of enhancing customers footfall together with the lifting of travel curbs and safe management procedures. “This augurs well for retail providers, particularly those located in the Downtown Core as well as Orchard,” claims Koh.

“With footfall recuperating strongly in the Orchard Road shopping belt and the CBD, together with shopper traffic in the suburbs staying resilient, this definitely suggests that the bricks-and-mortar company is still appropriate, also as on the internet purchasing gets traction,” states Koh, associate director of research at Colliers Singapore.

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