retail rents

High street rents in retail areas grew modestly in 1Q24, by 0% to 1% QoQ.

It’s partly because of the new administration.   Landlords are becoming more optimistic about the retail market, and it's partly thanks to the new administration, said CBRE.   In a report, CBRE said the measures of the new administration to revitalise the economy has given landlords a confidence boost.   Also contributing to the landlords’ improved optimism is their belief that high-street rents have already bottomed out.   “They are expecting rents to be stabilised or to be improved from the current levels,” said CBRE, adding that landlords also feel that in the future, the impact of the pandemic on the retail market will be “limited.”   Brands and retail operators, for their part, are also “actively deploying their business strategies with most having new stores opening in the plan for the coming year,” said CBRE.   Segments which are most active in terms of expansion are healthcare, supermarkets, high-end household goods and daily necessities.   On the flip side, CBRE said landlords and tenants are still in a stage of the seesaw battle when it comes to compromising on the rental terms.   Given the situation, the expert said retail vacancy level in H2 will likely remain stable, whilst rents will only increase by a meagre 0% to 5%.