Chart of the Day: Regional Centres prime space average monthly gross rent up

The average reached $33.80 per sq ft per month after remaining unchanged for three consecutive quarters.

Colliers International said:

Continued interest from retail and F&B operators in suburban malls which enjoy the advantage of an immediate captive catchment population, provided support for rents to increase in 1Q 2012. As of the end of March, the average monthly gross rent of prime space in Regional Centres inched up by 0.6% QoQ to reach $33.80 per sq ft per month, after remaining unchanged for three consecutive quarters.

Over at the Orchard Road shopping belt, the prevailing high rental levels of retail space had put a check on rental movements despite the limited availability of space suitable for international brands. Monthly prime ground floor rents in the locale held stable at $38.30 per sq ft as of 1Q 2012, after the 0.5% QoQ slip in 4Q 2011.

Going forward for the rest of the year, approximately 655,000 sq ft of new lettable retail space is expected to be completed in the city-state, following the addition of 6.1 million sq ft since 2009. Notable projects expected to receive Temporary Occupation Permits in 2012 include Star Vista (163,000 sq ft), Gardens by the Bay (101,000 sq ft) and the asset enhancement works at Atrium@Orchard (111,000 sq ft).

Heightened competition among shopping malls for tenants and among businesses for the retail dollar is putting pressure on existing mall owners and retailers in these malls and driving them to renew and reinvent themselves. To this end, several malls have taken the refurbishment/ repositioning path.