Prime retail rents improve in 1Q2022 amid consumer rebound
Looking ahead, Colliers predicts an extra supple retail outlook and lessee sales on the back of increasing consumer step and the lifting of traveling curbs and secure regulation actions. “This augurs well for retail operators, especially those located in the Downtown Core and also Orchard,” claims Dickson Koh.
“With footfall bouncing back firmly in the Orchard Road shopping belt and also the CBD, in addition to customer traffic in the country areas continuing to be resistant, this obviously shows that the bricks-and-mortar company is still relevant, also as on the internet buying gains purchase,” mentions Koh, associate supervisor of research at Colliers Singapore.
Prime retail rents in country and also Orchard Road areas moved up by 0.7% as well as 0.4% specifically in 1Q2022, according to a study by Colliers. This is an enhancement from 4Q2021 which saw prime suburban rentals up by 0.5% q-o-q while Orchard Road retail leas marginally doubled by 0.1% q-o-q.
He anticipates stores will certainly be more favorable concerning their development programs, which would give more service to a more powerful leasing interest. Decreased openings prices amidst minimal new supply must likewise support a gradual comeback of retail leas from 2H2022. Yet consistent inflationary pressures as well as workers lacks might solidify progress.