Prime retail rents improve in 1Q2022 amid consumer rebound
Dickson Koh assumes stores will certainly be extra favorable concerning their growth programs, which would certainly add additional service to a more powerful leasing interest. Decreased openings rates amidst restricted new supply should additionally maintain a gradual rehabilitation of retail rents from 2H2022. But persistent inflationary pressures as well as manpower shortages may set improvement.
Looking in the future, Colliers predicts a more buoyant retail probability and also leaseholder sales on the back of enhancing customers step and even the lifting of traveling curbs and also secure supervision steps. “This augurs well for retail providers, especially those located in the Downtown Core and Orchard,” says Koh.
Prime retail rents in country and Orchard Road venues moved up by 0.7% and also 0.4% respectively in 1Q2022, according to a statement by Colliers. This is an increase from 4Q2021 which saw prime suburban leas up by 0.5% q-o-q while Orchard Road retail rents somewhat grown by 0.1% q-o-q.
“With step bouncing back highly in the Orchard Road shopping belt as well as the CBD, as well as buyer traffic in the suburban areas maintaining resilient, this definitely shows that the bricks-and-mortar market is still relevant, also as on-line purchasing obtains traction,” mentions Koh, associate supervisor of research study at Colliers Singapore.