Guess which sector is driving retail leasing activity in Singapore

Retailers in this category are moving away from shopping centres.

Based on reports by CBRE, most retailers in Asia Pacific remained cautious in Q1 2017 and took longer to negotiate leasing terms and conduct due diligence.

Amongst the different sectors, F&B remained the key demand driver, with solid leasing activity reported in major markets. More groups are shifting their focus away from shopping centres and are exploring alternative locations such as shophouses, office buildings and industrial buildings. Sporting goods retailers are performing relatively strongly as well and are the other drivers of leasing activity.

Retailers in the mid-range fashion category are seeking turnover rent agreements but landlords are unwilling to compromise.

“Landlords are turning more willing to lease space to pop up stores as a short term remedy to fill space and channel foot traffic. Some retailers are opening such stores for 12 months and then expanding if they perform well,” said CBRE.