Prime retail rents improve in 1Q2022 amid consumer rebound
Prime retail rentals in suburban including Orchard Road locations edged up by 0.7% and 0.4% specifically in 1Q2022, according to a report by Colliers. This is an advancement from 4Q2021 which saw prime rural rentals up by 0.5% q-o-q while Orchard Road retail leas marginally grown by 0.1% q-o-q.
Looking ahead, Colliers predicts an extra resilient retail overview and also occupant sales on the back of boosting shopper footfall and the lifting of trip curbs and reliable management actions. “This augurs well for retail providers, especially those nestled in the Downtown Core and Orchard,” claims Koh.
“With footfall recuperating strongly in the Orchard Road shopping belt and also the CBD, together with consumer traffic in the country areas remaining durable, this clearly signifies that the bricks-and-mortar company is still appropriate, even as online purchasing achieves purchase,” announces Dickson Koh, associate supervisor of research study at Colliers Singapore.
He expects stores will certainly be extra bullish regarding their growth programs, which would add additional help to a more powerful leasing need. Decreased openings prices amidst minimal brand-new supply need to additionally support a progressive comeback of retail leas from 2H2022. But relentless inflationary pressures as well as labor force shortages might set development.