It is the highest vacancy level since 1Q11.
Island-wide, overall vacancy for retail spaces rose 8.4% in 3Q16, recent figures from Urban Redevelopment Authority showed. According to CIMB, this has been the highest level since 1Q11.
The brokerage firm noted that well-positioned malls integrated with major transport nodes will continue to withstand this waning demand for retail spaces.
CIMB noted that this was manifested by the portfolios of CapitalLand Mall Trust, Fraser Centrepoint Trust, Mapletree Commercial Trust and SPH REIT.
“We expect retail landlords to focus on F&B and retail-tainment/lifestyle offerings to combat the drop in consumers’ purchasing power,” the firm argued.
