In 2024, approximately 0.7 million sq ft of retail space is expected to come into the market, with majority of the supply located in theOutside Central Region (OCR) area, contributed by Pasir Ris Mall. Other notable projects expected to complete include 46 & 48 Kim Yam Road in Rest of Central and IOI Central Boulevard Towers in Downtown Core area. Some 0.4 million sq ft of retail supply is scheduled to be completed in 2025, of which, the OCR submarket will continue to be the largest contributor with the completion of Punggol Digital District and Lentor Modern. In 2026, 0.1 million sq ft of retail supply is projected to complete, and Downtown Core submarket will be the largest contributor with the completion of TMW Maxwell. The OCR submarket is expected to contribute 48.2%, which is the largest share of total future supply from2024 to 2026. The other submarkets, Rest of Central, Fringe and Downtown Core will account for 24.5%, 15.3% and 12.0% respectively. There are no new completions in the Orchard Road submarket between 2024 and 2026. Demand and Vacancy With the recovery of tourist activity and return to office trends, retail expenditure has recovered to pre-pandemic levels. However, due to changing consumer preferences and shopping patterns, retailers have to adapt to the evolving landscape to stay relevant and attract footfall. With visitor arrivals at approximately three-quarters of pre-pandemic (2019) levels, and expected to fully recover in 2024, tourist-dependent submarkets such Source: CBRE Singapore, 4Q 2023 Note: As at 31 January 2024 ISLANDWIDE FUTURE RETAIL SUPPLY (2024 – 2026) MAJOR FUTURE RETAIL SUPPLY (2024 – 2026) 2024: (0.7 million sq ft) 2025: (0.4 million sq ft) 2026: (0.1 million sq ft) Orchard Road • N.A. • N.A. • N.A. Downtown Core • Guoco Midtown phase II: 20,000 sq ft • IOI Central Boulevard Towers: 30,000 sq ft • Odeon Towers (A/A): 25,000 sq ft • Keppel South Central: 27,300 sq ft • TMW Maxwell: 35,200 sq ft Rest of Central Region • 46 & 58 Kim Yam Road: 150,000 sq ft • Canning Hill Square: 96,900 sq ft • Central Mall/Central Square: 33,900 sq ft Fringe • Marine Parade Underground Mall: 99,800 sq ft • Labrador Tower: 28,300 sq ft • The Linq: 25,100 sq ft • N.A. • Piccadilly Grand/Galleria: 21,600 sq ft Outside Central Region • Pasir Ris Mall: 282,800 sq ft • Punggol Digital District: 185,000 sq ft • Lentor Modern: 64,600 sq ft • West Mall: 20,000 sq ft • N.A. Source: CBRE, 4Q 2023 Note: As at 31 January 2024 as Orchard Road and Downtown Core have observed stronger recovery compared to other submarket. These submarkets are poised to recover at a faster rate both in terms of rental rates and vacancies. With a slew of new mall openings, leasing activity has been strong throughout 2023. The demand continued to be primarily driven by F&B operators, especially cafes, with services, fashion and beauty & health stores also increasing their presence. 0.8 0.6 0.4 0.2 0.0 Net Lettable Area (million sq ft) 2026 2025 2024 0.1 0.03 0.04 0.2 0.2 0.1 0.03 0.3 0.3 0.02 Rest of Central Region Outside Central Region Average Annual Pipeline Supply (2024-2026) Downtown Core Fringe Historical Average Annual Completions (2019 – 2023) 0.4 mil sq ft 0.5 mil sq ft 96 CAPITALAND INTEGRATED COMMERCIAL TRUST INDEPENDENT MARKET REVIEW
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