STB has estimated that tourist arrivals will fall 20% to 30 percent this past year.
On the flip side, CBRE jobs that national spending will stay resilient. Though the brick-and-mortar retail industry will battle as customers prefer to remain inside as a result of virus anxieties, supermarkets, convenient stores and healthcare goods will see increased need. Firms offering online shipping and e-commerce providers will also profit.
Concerning retail area, the distribution pipeline in Singapore is expected to fall considerably to 280,000 sq feet, from 1.06 million sq feet in 2019. This reduce supply commensurates with all the reduced level of need. As of 4Q2019, complete private retail inventory stands in 50.19 million sq feet, for example 4.33 million sq feet of vacant inventory.
Retailers are expected to consolidate since they reevaluate their shop performance.
Landlords have been supplying incentives and pop up spaces in 2019 to deal with reduced consumption. There’ll be increasing pressure to allow them to keep occupancy and rents in 2020. CBRE hopes that landlords will probably be proactive in supplying leasing rebates and extra marketing and advertising strategy support.
CBRE urges retailers to innovate at the meantime, through construction on omni-channel plans and improving last-mile shipping and fulfilment capabilities. This will prepare them to ride the tide of recovery once the virus epidemic is totally contained.