Orchard Road retail vacancy rate drops significantly
The Orchard Road retail vacancy rate has dropped to 5.6 per cent in the second quarter.
According to a report by CBRE, the rate is the lowest in 14 quarters and well below 2016 figures.
CBRE’s head of research for Southeast Asia Desmond Sim said, “On the back of an improved tourism market, coupled with limited new supply along our famous shopping belt, Orchard Road is still able to attract new tenants.”
Noting that new-to-market brands still require and demand visible frontages with high footfall, Sim cautioned that there may be vacancies on secondary corridors and secondary floors.
Meanwhile, senior director of research at Cushman & Wakefield, Christine Li, said, “A two-tier market is forming in the retail segment, as accessible and well-managed malls attract the bulk of pedestrian footfall.
Retailers and landlords have to continue to reinvent themselves, invest in technology and focus on lifestyle and activity-based experiences to keep pace with the fast-changing retail landscape.”
This year’s new openings were largely in the food and beverage and fashion categories.