With the acceleration of digitalisation as well as changing consumer behaviour, it is imperative for retail tenants and landlords alike to adapt to the rapidly-evolving multiplatform retail scene to remain relevant, retaining the physical shopper catchment in shopping malls through an online presence. Malls should no longer purely be just a point of sale, but also extend towards being a focal point that incorporates meaningful and memorable experiences that are able to resonate with the varying consumer needs. This would make for an in-store shopping environment that is more enjoyable and appealing than just traditional brick-and-mortar shopping or mere e-commerce, as part of their placemaking strategy.
With Singapore in Phase Three of Re-Opening, increased footfall to retail spaces is expected with the relaxation of measures for gatherings and a majority of the workforce back to the workplace.
The recent slowdown in rental declines of prime retail spaces point to a potential bottoming out of rents by early 2021, and any rental reduction during the year is projected to be about 5%, barring lockdowns as a result of recurring community infections. Rentals of prime retail spaces located in Orchard might require a bit more time to recover and are expected to only return to pre-COVID-19 levels once mass vaccinations prove successful enough for the nation as well other key cities to relax travel restrictions.
