Singapore prime retail holds firm despite tenant churn

Well-connected malls are securing faster backfills and higher rents as food and beverage operators replace traditional anchors.

Singapore’s prime retail market is holding firm despite tenant turnover, but leasing performance is splitting sharply between well-located malls and weaker assets struggling to replace occupiers.

Wong Xian Yang, Head of Research Singapore and Southeast Asia at Cushman & Wakefield, said mall economics increasingly depend on location, accessibility and tenant mix.

Suburban malls remain anchored by necessity retail, including supermarkets, enrichment centres, food and beverage outlets and services. Their large residential catchments provide stable footfall and greater protection during economic downturns.

City-centre and Orchard Road malls rely more on tourists, luxury brands, department stores and flagship outlets seeking visibility.

“The retail market is a two-tier market,” Wong said. Prime malls with strong accessibility and attractive tenants can backfill vacant units quickly, whilst weaker properties face longer vacancies.

Retailers are also prioritising store productivity over expansion, supporting demand for smaller units in strong locations. This allows landlords to command higher rents per square foot whilst reducing reliance on a few large occupiers.

Mass rapid transit connectivity helps widen a mall’s catchment and lowers the effort required to visit, but Wong said transport access alone does not determine performance. Landlords also need a tenant mix that increases dwell time, repeat visits and spending.

Traditional anchors such as department stores and cinemas still attract footfall but are “no longer a must-have in a mall,” he said. Some large spaces are being converted into food and beverage, fitness, education and entertainment uses.

Food and beverage operators accounted for slightly more than half of new store openings in tier-one malls during the first half, followed by lifestyle and fashion brands.

For landlords, resilience increasingly rests on replacing single large anchors with several smaller tenants that are less exposed to e-commerce and can generate regular visits.