News that rents for space in shopping malls in Singapore are falling does not necessarily help the country’s FECs, say observers.
Shopping mall rents fell during the third quarter of this year against a poor outlook, mainly due to the large supply of new retail space and the challenges from online shopping.
Average retail rents in the prime Orchard/Scotts Road area dropped 0.3 per cent, higher than the average retail rents in other city areas and there are reports of more space becoming available in malls, particularly on upper floors where footfall is lower.
Sonaal Chopra, who runs the big Timezone chain of amusement centres in the region, told InterGame: “Retailers will need to deliver the best to enjoy growth in this market and it is the same for FEC operators. The trick is to have great formats in great malls.
“There is no place for mediocrity in Singapore. It makes for interesting times in this market. Good operators will flourish but many of the lesser quality locations will perish over the next three years.”
