Cairnhill Nine Capitaland Somerset

Retail landlords have been forced to review their leasing strategy on account of too much retail vacancy and a low tenant demand for the space.

The past was consumed by dividing up large valuable retail space into smaller spaces to gain higher rents per square foot. But now the focus has shifted to being able to maintain occupancy and preserve rents, with balancing the placement of a mix of large and small retail spaces inĀ Cairnhill Nine for rent, as suggested by a consultant.

Cairnhill Nine Takashimaya Shopping Centre

Though tenants who occupy larger retail spaces are now paying lower rents per square foot, with some even paying sometimes only single digits per square foot for Somerset Condo, they do have the massive ability to create high football traffic for the mall.

Ready and captive customers are provided to shopping malls during the week days due to the anchor tenants, such as commercial schools and medical centres. Take into consideration for example the fact that F&B amenities are required by Capitaland students during breaks from lessons and thus they head into the mall’s retail areas.

There will be less work for the Cairnhill Nine Condo landlord regarding lease management when he has tenants who occupy larger retail spaces, which means that the landlord is not thus required to have as much space for walkways.

Cairnhill 9 Paragon Shopping Centre

Therefore, this is the primary reason for which some Cairnhill Nine landlords have reverted to less conventional tenants, which include childcare or daycares and physical fitness centres–they are able to drive traffic to the malls.

In the city centre, it is common for large tenants to spring up in the Paragon Shopping Centre shopping malls, as mentioned by consultants. These large tenants include Raffles Medical, which in June opened with a multi disciplinary medical centre at the Shaw Centre that has been newly renovated. At Millenia Walk, the Harvey Norman store recently expanded its space by opening the new flagship outlet in the mall, measuring 100,000 square feet.

There are other new concepts that have emerged on the market as well. The ABC Cooking Studio, which is considered to be a top Japanese cooking school, was opened at Cairnhill Nine Takashimaya during the month of April of this current year. In July, a new indoor snow sports centre called Urban Ski opened at Ion Orchard. Next year Singapore’s first Apple Store will be featured at Knightsbridge.

Somerset Cairnhill Nine Condo Ion Orchard

Being Singapore’s first integrated Japanese emporium that uses more than 34,000 square feet of floor space, Emporium Shohukin was welcomed by Marina Square in the month of September. Last month, opening its biggest South-east Asian character theme indoor playground that measures to be 11,000 square feet, South Korean Pororo was welcomed in the new retail wing at Marina Mall. BT seems to be aware that a major commercial school plans to also rent up to 100,000 square feet of space at Marina Square.

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Visionaire EC by Qingjian Woodlands

Industrial Site on Lok Yang Road Up For Sale.On 1 fourth and 4 Fifth Lok Yang Road is a heavy industrial development. It is located on a 133, 876 sq ft corner site with a gross floor area of about 107,130 sq ft. in total it has five buildings. There are two storey factory buildings with a mezzanine level and another two without. The rest are a single storey and another that is single storey.

The Visionaire Canberra

The property is up for sale through an expression of interest and its indicative price is US$ 20million. Zoned as Business 2 properties for The Visionaire Qingjian Sembawang, it has a good frontage facing Fourth Lok Yang Road, Fifth Lok Yang Road and Lok Yang Way. The plot ration of this property stands at 2.5 and the 1 fuourth Lok yang Road has a remaining tenure of 18 years while the 4 fifth Lok Yang road has a 22 years remaining tenure. More so, the property comes with two titles. Any buyer can subsequently sub divide the property to suit his desires. It is property has a big advantage because of its size. Rarely will you find such complex industrial property on sale in The Visionaire EC Sembawang. In fact all other similar property sold this year, none has averaged this size. This therefore presents a very good chance for end-users in the B2 industries to acquire industrial property that is already landed. It is easily accessible within the Jurong Industrial Estate.

Visionaire Canberra Plaza

Another sale by expression of interest will also be done for food factory located at 255 Jalan Boon Lay on Monday in Woodlands Visionaire EC Sembawang. It is located on Business 2 zone and is located on a huge corner site of about 316, 524 sq ft property. Its gross floor area is about 130, 000 sq ft and has a plot ratio of 2.5. Its lease expires on 20129.

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Local Properties

Blackstone Indcor was purchased by GLP and GIC for US$8 billion, a property which spans 117 million square feet in the United States. GLP also made another large purchase of US$4.5 billion in order to acquire a portfolio of industrial properties by the Industrial Income Trust.

A portfolio of 26 industrial properties, totalling over $1 billion was purchased by Ascendas Real Estate Investment Trust in Australia from the GIC and Frasers Property Australia.

Singapore Investors for Local Properties

Singapore investors have continued to favour retail and office properties with a combined total of around $9 billion purchased in 2015.

Despite the expansion of overseas investment by Singapore investors, the flow of foreign investment into Singapore has remained stable at a rate of $3.5 billion which is similar to most recent years, with the exception of 2014 where this flow of foreign investment fell to just $1.22 billion.

China has continued to remain the leader of foreign investment in Singapore. Chinese investors have to date spent over US$1.03 billion on Singapore properties.

The biggest purchase of Singapore property in 2015 however, was surprisingly not by an investor of Chinese origin, with the property in “Paya Lebar” purchased by the “Abu Dhabi Soverign welfare fund, the Abu Dhabi Investment Authority” and the Australian developer “Lend Lease.”

Foreign Investors for Local Properties

Other rather active foreign investors in Singapore real estate were the Hao Juan Investment Group and the China Metallurgical (CMM) respectively.

Since 2011, the preferred route for foreign investors interested in purchasing Singapore real estate has continued to be development sites, which has accounted for 58% of investment in Singapore properties at a cost of US$8 billion.

The preference for development sites stems from the ease of completing the transaction and the transparency of the tender process. These sites also tend to reap higher profits and are more readily available in comparison to other properties which market watchers say are also less likely to go on the market because they are held by long term investors.

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