Prime retail rents began to stabilise in many markets across the world in the third quarter of this year as economic and retail indicators started to show signs of greater stability. Retailer confidence had also gained positive momentum. According to property consultancy CB Richard Ellis' latest Global MarketView on the retail sector, retail rents globally fell by an average of one per cent in the third...
Retail Rental
Prime retail rents on Orchard Road declined by 2.8 per cent to S$38.17 per square foot in the third quarter from the previous three months. That is smaller than the 3.7 per cent fall in the second quarter and the 4.4 per cent drop in the first, according to a report by Colliers International. Meanwhile, the average monthly retail rents in prime malls in the Tampines, Woodlands and Jurong areas posted an...
Property consultancy CB Richard Ellis said on Monday that prime Orchard Road rents averaged S$32.90 per square foot in the third quarter, down three per cent from the second quarter. For the full year, CBRE said it expects Orchard Road rents to fall between 10 and 12 per cent, and a further decline is not expected to exceed five per cent next year. This means the eventual rental trough should not be less...
Retail landlords are turning to more creative ways to charge rent amid the current downturn and market watchers are also expecting changes in rental structures. This is due to factors such as the increased presence of institutional landlords. The economic slowdown is also expected to lead to falls in retail rentals by up to 20 per cent by the end of the year. An expected glut in retail space, especially...
The upcoming suburban mall Nex located at Serangoon Central has leased 60 per cent of its lettable space. Its developer Gold Ridge said retailers like Isetan, Courts and Challenger are among its key tenants. Gold Ridge added that Isetan has secured a 53,000-square foot space, spanning three floors. This will be Isetan's first new department store in Singapore since 1995. Another first, the developer...
Property developer Far East Organization has launched a scheme to encourage start-ups at its shopping malls. Instead of paying rent, these tenants can issue preference shares to the developer for up to three years. Tenants at six Far East Organization malls – including the new Orchard Central – can now pay rent in shares, instead of cash. The other participating malls are Central, Far East Square,...
Property consultancy CB Richard Ellis (CBRE) is revising its rental forecasts for 2009, given better-than-expected average rentals in the second quarter. The firm now expects Orchard Road rents to fall between 10 and 12 per cent this year, a less drastic decrease than its earlier estimate of 15 to 20 per cent. Suburban mall rents are likely to contract between 5 and 6 per cent, down from its earlier...
Singapore has moved a notch higher to 18th spot as the most expensive retail location in the world, despite easing rental rates for super prime retail space. Property consultancy firm CB Richard Ellis (CBRE) said prime retail rents have declined across the globe with the global financial crisis reducing consumer confidence and weakening spending. Yet super prime rents in Singapore stood at US$408 per...
Four industry bodies in Singapore have banded together to battle the current downturn. The Singapore Retailers Association, the Restaurant Association of Singapore, the Singapore Jewellers Association, and the Textile and Fashion Federation have pledged to share information and create a unified stance on matters common to their industries. In a joint statement, the four industry bodies say they have tied...
A 40-year-old shopping icon in Orchard Road is at risk of losing its tenants to upcoming malls in the area. Sources told Channel NewsAsia that about half of Shaw Centre's office and retail tenants had moved out within the last six months. Many of them refused to renew their leases after Shaw raised rents by about 100 per cent. Tyan and Betty Barclays, both upmarket boutiques on the ground floor of Shaw,...