Prime Orchard Road rents eased to $30.10psf

With a few major leasing deals concluded as well as the exit of an anchor tenant along Orchard Road, the retail leasing market gave mixed signals in 1Q11.

While monthly rents for Prime Orchard Road decreased 0.5% from a quarter ago, prime suburban rents remained unchanged at $29.10psf/month. 

Letty Lee, Director of Retail Services, said, “it is likely that Prime retail rents along Orchard Road would continue to soften in the near- to- medium term as recent completions along Orchard Road have not been digested and rental re- negotiations at some of these malls are imminent. Prime Suburban rents are likely to stabilise, primarily because such malls are defensive assets retailing goods and services for which consumption is relatively inelastic".

Knightsbridge announced that it is fully- let as it secured Abercrombie & Fitch for 21,000- sf of multi- level space. This store, which will open in Q3 2011, will be the second largest flagship in Singapore after H&M’s 32,300- sf outlet at Orchard Building. A new- to- market American ice cream chain, Cold Stone Creamery, opened a 1,300- sf outlet at Orchard C entral. The 52- seat flagship store features an open kitchen concept.