Amid a multiple whammy hitting the retail scene, mall owners are re-looking their leasing strategies and throwing in incentives such as extending the rent-free settling-in period, and lowering rentals on longer leases, which are as long as five times (or more) the standard three-year duration.
Brick-and-mortar retailers here have been buffeted by the economic slowdown, competition from e-commerce, the manpower crunch, rising business costs and lacklustre tourist spending, among other things.
Despite the gloom, big-name retailers are signing long lease agreements. The idea, said industry players, is to take advantage of softening rents to position for the long-haul.
By the end of the year, international lingerie brand Victoria’s Secret and American fashion company Michael Kors are opening their first flagship stores in Singapore at Mandarin Gallery on Orchard Road after signing leases of 10 and seven years respectively. French sporting goods retailer Decathlon signed a lease of more than 15 years for its 35,000sqft outlet at Viva Business Park in Chai Chee.
(Source: Today Online )