The prime facing areas within the orchard malls have experienced rental levels fall by 4% across the first three quarters of the year, compared to a 2.9% fall for the suburban malls during the same period of time. That sharper decline contributed to the declining rental gap between these groups of shopping malls for Somerset Cairnhill Nine.
Besides the generally hard economic times affecting Singapore, both suburban and orchard malls have lost out on sales to online retailers. If a strategy is not developed to counter the popularity of online shopping then that could adversely affect rental levels still further. That of course could also influence whether or not the Cairnhill Nine Grand Cairnhill Condo rental gap continued to narrow.
Cairnhill Nine Condo Somerset
Further declines in rent are predicted, a fall of around 2% for the suburban malls near Capitaland Cairnhill Nine, and a larger fall in the region of 3 to 5% for the orchard malls. If that prediction turns out to be accurate then the rental gap between the malls will continue to narrow further. That would also demonstrate that the decline in the rental income for orchard malls is worse and will stay that way unless there is an economic recovery.
Yet another consulting firm has calculated that the rental income premium that orchard malls enjoyed over the suburban Orchard Cairnhill Nine has actually decreased notably in the last three years. The rent levels are only 1.09 times higher this year, compared to 1.12 times higher in 2014, and 1.13 times higher during 2013. If orchard malls wanted to increase the gap again then ways would have to be found to reverse the decline in rentals and rent rates been charged.
Cairnhill Nine Capitaland near Takashimaya
Some of the Orchard Road malls have found it really difficult to rent out all of their shop and retail units in Somerset Cairnhill Nine. Even refits and revamps of these malls have not got more firms to rent store space. Sometimes firms have only hired store space after been offered discounted rent levels in Cairnhill Nine Grand Cairnhill Condo. Two of the orchard malls that have found it hardest to find firms to rent units have been Scotts Square and also Shaw Corner.
Cairnhill Nine Ngee Ann City
In theory at least real estate agents and Somerset Cairnhill Nine property developers should never have any problem in letting out shops and retail units to firms looking for a prime location to trade from. However in the Fringe Area in particular there a few shopping malls relatively close together, all competing for a limited number of retailers to be based in their mall. They are also competing to attract the same shoppers to shop at their mall and none of the others.