APAC retail rents slip 0.4% in Q1
It’s a slower rate than the 2.1% drop recorded in the previous quarter.
Asia Pacific retail rents fell by 0.4% y-o-y in Q1 2021, a slower rate of decline than the 2.1% y-o-y drop recorded in the previous quarter. According to CBRE, this quarter’s improved performance was largely due to rents in tier 1 cities in Mainland China returning to growth.
“Retailers in most markets were more active in looking for new leasing opportunities, particularly in prime locations, backed by a steady improvement in retail sales and consumer confidence. Particularly apparent was leasing demand from New Energy Vehicle (NEV) companies seeking prime locations in Mainland China,” says CBRE.
Although the leasing market will continue to favour tenants in the medium term, availability is now beginning to tighten. However, CBRE retains its 2021 forecast of a mild decline in Asia Pacific retail rents.