Friday, October 5, 2012

Prime retail rents steady since 2007


Monthly prime suburban rents held firm at S$31.1 per sq ft while those on Orchard Road softened 0.8% to
S$35.2 psft.

Here's detailed analysis from Savills Research:

Orchard

Anchor tenants and big-format stores have taken centre stage again, creating spin-off demands under a challenging retail climate, while the Southeast Asian growth story remained a pull factor for international retailers. ION Orchard, which is revamping its Basement 3, has strengthened its big-format store offerings.

H&M has pre-leased a two-storey, 20,000-sq ft space in the mall, to open around year’s end. On the third storey, DKNY has launched its largest store in Singapore spanning more than 4,000 sq ft. The revamp has drawn new- to-market brands including fashion labels Carven and Vivienne Westwood Anglomania, hailing from France and the UK respectively, as well as Yves Saint Laurent Beaute’s first boutique in Southeast Asia.

Over in Somerset, orchardgateway is said to be more than 50% pre- committed ahead of its expected
completion next year. Further down Orchard Road, the asset enhancement for the Atrium@Orchard is slated to be completed by year’s end. It boasts GAP’s largest store in Singapore and Sephora’s sixth outlet here. The project will be integrated with the adjacent Plaza Singapura to form an enlarged mall with a combined space of 625,000 sq ft.

Rents for ultra-prime space held firm but those for off-pitch space have come down slightly. Overall prime rents on Orchard Road softened by around 0.8% to S$35.2 per sq ft per month in Q3.

Suburban

Jurong Gateway continued to perform well in Q3. Innovative asset enhancement is key in staying ahead of
the race, where four malls with a total potential NLA exceeding 1.6 million sq ft stand in close proximity. JCube has distinguished itself from the typical suburban malls by offering a range of new retail brands and concepts. Baby Phat joined other international labels to launch its first Singapore store in the mall in July this year. Nearby, the IMM mall is undergoing a makeover that will transform it into Singapore’s largest outlet destination. It will have 40 to 50 outlet stores, including adidas, Billabong and Converse, where merchandise will be sold at discounted prices.

Leasing demand for suburban malls island-wide remained firm in Q3 and prime rents held steady at S$31.1 per sq ft per month.


Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
Email: marshe_inc@yahoo.com.sg
DTZ Debenham Tie Leung (SEA) Pte Ltd (L3006301G)

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