Orchard Road retail vacancy rate free jump
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The Orchard Road retail vacancy rate has dropped to 5.6 per cent in the second quarter.
According to a report by CBRE, the rate is the lowest in 14 quarters and well below 2016 figures.
CBRE’s head of research for Southeast Asia Desmond Sim said, “On the back of an improved tourism market, coupled with limited new supply along our famous shopping belt, Orchard Road is still able to attract new tenants.”
Noting that new-to-market brands still require and demand visible frontages with high footfall, Sim cautioned that there may be vacancies on secondary corridors and secondary floors.
Meanwhile, senior director of research at Cushman & Wakefield, Christine Li, said, “A two-tier market is forming in the retail segment, as accessible and well-managed malls attract the bulk of pedestrian footfall.
Retailers and landlords have to continue to reinvent themselves, invest in technology and focus on lifestyle and activity-based experiences to keep pace with the fast-changing retail landscape.”
This year’s new openings were largely in the food and beverage and fashion categories.
Questions & Answers
Q.What is the current retail vacancy rate on Orchard Road?
What is the current retail vacancy rate on Orchard Road?
The retail vacancy rate on Orchard Road dropped to 5.6 per cent in the second quarter. This is the lowest rate observed in the last 14 quarters, significantly below the figures recorded in 2016.
Q.What factors are contributing to Orchard Road's ability to attract new tenants?
What factors are contributing to Orchard Road's ability to attract new tenants?
An improved tourism market is a key factor, alongside limited new retail supply along the shopping belt. These conditions collectively help Orchard Road appeal to new businesses.
Q.What challenge might new-to-market brands face when seeking space on Orchard Road?
What challenge might new-to-market brands face when seeking space on Orchard Road?
While new brands seek visible frontages with high footfall, there may still be vacancies on secondary corridors and secondary floors. This suggests prime locations remain competitive.
Q.What is Cushman & Wakefield's view on the current retail market trend?
What is Cushman & Wakefield's view on the current retail market trend?
Christine Li observes a two-tier market emerging, where accessible and well-managed malls attract most shoppers. Retailers and landlords need to adapt by reinventing themselves and focusing on experiences.
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