Shops at Changi Business Park area forced to shut amid low footfall due to work-from-home measures

SHOPS at the Changi Business Park area, dubbed as "the east's central business district (CBD)", have been forced to shut amid a lack of crowds due to work-from-home measures, reported Lianhe Zaobao.

Many shops said they have seen business fall by 70-80 per cent as employees stay at home due to safe distancing measures. Merchants who are unable to withstand the rental pressure have been forced to shut.

A spokesperson for Changi City Point, which is managed by Frasers Centrepoint Trust, said that Covid-19 prevention measures have led to a reduction in the flow of people in the mall.

As such, the mall said it is helping tenants reach a wider customer base by implementing more marketing plans and digital measures, as well as providing rent rebates.

Landlords in the area have offered rent reductions and free parking to help tenants during the difficult times, and some are optimistic about companies preferring office areas - such as the Changi Business Park area - that offer relatively cheap rents.

ESR Real Estate Investment Trust (ESR-Reit), which runs ESR BizPark@Changi, has been providing rent-related assistance to tenants, including rental rebates during the previous Phase 2 (Heightened Alert), a spokesperson said.

It said the current occupancy rate for ESR BizPark@Changi is similar to pre-pandemic levels, and it expects more tenants in the coming months, as tenants shift out of the CBD and Paya Lebar area in line with the government's plan to decentralise working areas.

"As more companies adopt telecommuting arrangements, they will look for cheaper options than offices in the CBD to accommodate necessary services," the spokesperson said.

Ascendas Reit is also introducing measures such as free parking during lunch hours to attract more business to its food and beverage (F&B) tenants during Phase 2 (Heightened Alert).

It expects more employees will return to the office as vaccination rates increase and the government relaxes restrictions.

"As the volume of commercial activity in Singapore picks up, we expect demand for business parks, logistics and industrial space to resume its growth trajectory," a spokesperson added.

The Changi Business Park area, which houses companies including IBM, Xilinx, DBS and Standard Chartered Bank, began operations in 1997 and had attracted businesses from the fields of commerce, industry, technology, research and development, as well as many high-tech and knowledge-intensive industries.