UPCOMING TRENDS

Do you see a trend towards the redevelopment of retail buildings into mixed-use hubs?

No, but what we are seeing is a trend towards developing greenfield sites into mixed-use projects with retail components.

What other trends do you see at the moment in terms of converting or transforming retail spaces?

Landlords are looking at tenant mix changes

(in some cases, emphasizing F&B and less on fashion retailing), unit size optimization, and the incorporation of non-traditional trades to align with consumers’ shopping preferences and changing market demand.

Can you predict how much longer recovery will take in the retail sector?

In the short term, retailers are likely to still grapple with sustainability issues as the government support for retailers eases, and the COVID-19 (Temporary Measures) Act would no longer protect retail businesses against deferred liabilities.

As Singapore’s economy transits into Phase 3 of its reopening, with further relaxation of the safedistancing measures and travel restrictions, we expect more opportunistic retailers with a mediumto long-term perspective to take advantage of the availability of retail space in choice locations and lower rents to pursue expansion.The improved occupier demand could underpin rent recovery in 2022.

We expect a rising rent outlook on the investment front to drive renewed interest and asset values of retail assets, particularly investment-grade en-bloc necessity retail malls, in the medium term. Capital values are expected to recover in 2022 on the back of rising rents in the corresponding year.