There's a paradigm shift underway in CBD retail scene

More popular brands move to CBD.

Knight Frank reports that the retail landscape in the CBD is transforming, with a number of upcoming developments incorporating a retail podium of significant scale.

It also observed that more established retail brands show increasing interest to open outlets in and around the CBD.

Here's more from Night Frank:

Future upcoming mixed developments in the area which will incorporate a significant retail podium include Marina One, Oxley Tower and Tanjong Pagar Centre. The former DBS Towers at 6 Shenton Way will be redeveloped to include a four-storey retail podium. These larger-scale retail spaces allow for a good variety of trades and tenants, and the introduction of established brands could make these places more appealing for the office populace to patronize in the evenings after work, and even on weekends for visitors who prefer the lighter traffic conditions in the CBD.

Retailers take interest in business district: A paradigm shift among retailers is also observed, with more displaying keen interest to expand in the CBD area as they begin to recognize the business potential. Some, in particular well-known F&B brands, are looking to extend opening hours beyond the typical 5-day office work week to between 5.5 and 7 days. The move of a major fashion retailer like H&M into One Raffles Place is noteworthy. While food and retail provisions were previously mainly thought of as being ancillary, with a strong focus on providing convenience for the office crowd, there is a shift towards an emphasis on a holistic lifestyle offering as tastes and preferences of the office population change, and as more residential developments spring up in the area.

Hotspots in Raffles Place and Marina Bay: The CBD is set to see two new lifestyle hotspots by the end of next year, with the completion of Asia Square’s second tower in the second half of 2013, and the refurbished One Raffles Place slated to open in the first half of 2014.

The imminent opening of Tower 2 will bring the total retail area of Asia Square to 60,000 sq ft, with its trade mix to predominantly comprise Food & Beverage (F&B) tenants offering an array of cafes, restaurants, and gastrobars. To date, the retail space in the prime mixed development has achieved a committed occupancy of 97 per cent. For some operators like Ippudo Ramen, Ho Heng Noodle, and Pepper Lunch, it is their first venture into the CBD area, while others such as Red Mango, PLT Sandwiches, Subway, and Starbucks have existing outlets in the business district.

The retail podium of One Raffles Place is currently undergoing refurbishment, and along with having an enhanced cluster of F&B tenants, it will be positioned to meet women’s fashion needs. H&M and Virgin Active will be major anchor tenants, which will enhance the appeal of the place as a lifestyle destination.

Another existing large-scale retail space in the area is the Marina Bay Link Mall, which sees its F&B tenants in particular benefitting from high customer turnover during lunch on weekdays, with some even experiencing brisk business on weekday evenings. It also features fashion, beauty and wellness, conveniences, and services retailers catering to the office population. Terms in the retailers’ leases require them to open their outlets at the mall 7 days a week.