Retail space vacancy expands 8.4% in Q3
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It is the highest vacancy level since 1Q11.
Island-wide, overall vacancy for retail spaces rose 8.4% in 3Q16, recent figures from Urban Redevelopment Authority showed. According to CIMB, this has been the highest level since 1Q11.
The brokerage firm noted that well-positioned malls integrated with major transport nodes will continue to withstand this waning demand for retail spaces.
CIMB noted that this was manifested by the portfolios of CapitalLand Mall Trust, Fraser Centrepoint Trust, Mapletree Commercial Trust and SPH REIT.
“We expect retail landlords to focus on F&B and retail-tainment/lifestyle offerings to combat the drop in consumers’ purchasing power,” the firm argued.
Questions & Answers
Q.What is the overall retail space vacancy rate island-wide for Q3?
What is the overall retail space vacancy rate island-wide for Q3?
The overall vacancy for retail spaces island-wide rose by 8.4% in the third quarter of 2016. This figure comes from recent data released by the Urban Redevelopment Authority.
Q.When was the last time retail space vacancy levels were this high?
When was the last time retail space vacancy levels were this high?
According to CIMB, the current retail space vacancy level is the highest recorded since the first quarter of 2011. This indicates a significant increase in unoccupied retail units.
Q.What strategies are retail landlords expected to adopt to counter declining consumer purchasing power?
What strategies are retail landlords expected to adopt to counter declining consumer purchasing power?
Retail landlords are expected to focus on offering more food and beverage options, along with 'retail-tainment' and lifestyle experiences. This strategy aims to attract consumers despite their reduced spending power.
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