Retail rents to remain flat this year; premium for prime Orchard space shrinks

Singapore

THE standstill in retail rents will likely continue into 2015, as positive interest from retail occupiers to set up shop or expand is matched by their equal resistance to rent increases in the challenging operating environment.

Colliers is forecasting rental growth for prime ground floor retail space in Orchard Road to range between -1 per cent and 1 per cent this year, while that in the suburban areas and regional centres (eg heartland malls) could plateau between 0 per cent and 2 per cent.