Jan 24 2016, 01:02 PM
QUOTE(nexona88 @ Jan 21 2016, 01:07 PM)
MANY retail malls have been seeing an increasing number of empty lots lately, which is certainly not a positive sign. This points towards an oversupply of shopping malls, or even worse, poor business.
According to a head of leasing at a popular mall in the Klang Valley, mall operators are starting to see an increase in the number of early termination of retail tenant contracts.
“An increasing number of retailers are requesting early termination of their rental contracts. On top of that, there’s a drop in demand for retail space.
“We are maintaining the rent for some tenants, given the current tough operating environment. This is on a case-by-case basis.”
In times like this, established regional malls are expected to be resilient, albeit registering slower rental growth, and the new malls will have to identify their market positioning and value proposition to compete in the marketplace. Otherwise, the new malls will face difficulty in achieving optimal occupancy and rent,” he tells The Edge.
http://www.theedgeproperty.com.my/my/conte...ge-retail-reits
1U can also be quite empty on weekdays. The only malls I seen that always have people is Mid Valley and Sunway Pyramid. There is going be another big development opposite Kerinchi Station. Any idea what that consist of?According to a head of leasing at a popular mall in the Klang Valley, mall operators are starting to see an increase in the number of early termination of retail tenant contracts.
“An increasing number of retailers are requesting early termination of their rental contracts. On top of that, there’s a drop in demand for retail space.
“We are maintaining the rent for some tenants, given the current tough operating environment. This is on a case-by-case basis.”
In times like this, established regional malls are expected to be resilient, albeit registering slower rental growth, and the new malls will have to identify their market positioning and value proposition to compete in the marketplace. Otherwise, the new malls will face difficulty in achieving optimal occupancy and rent,” he tells The Edge.
http://www.theedgeproperty.com.my/my/conte...ge-retail-reits
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