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 in 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.