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The F&B scene in Singapore’s central business district, an area mainly known for its tall office buildings, is flourishing due to a high level of human activity and a wide array of properties that can accommodate eateries.
According to a Colliers International white paper, “the increased level of human activity in the CBD has led to an explosion of the F&B culture in Singapore’s financial district, where all types of dining concepts and watering holes can be found catering to every price and taste.”
In fact, the existing supply of non-shop space comprising restaurants, entertainment venues as well as health and lifestyle outlets rose to 3.3 million sq ft in Q2 2014 from just 3.0 million sq ft in Q1 2011, based on URA data.
But with the varied selection of such spaces, different rental standards have emerged, said the property consultancy. Rents of ground floor F&B space are usually the most expensive, especially if the attached building is modern and houses a significant working population. Rentals for type of location are generally within S$14 to S$25 per sq ft per month.
On the other hand, the report also noted that rents of rooftop space are usually lower at S$9 to S$14 per sq ft per month as pedestrians can’t see them from the street level, while rents depend on the area when it comes to shophouses. Those in Boat Quay go for S$8 to S$12 per sq ft per month, while those in Tanjong Pagar are leased for S$9 and $12 per sq ft month.
Despite the wide options, the supply of properties where new eateries can be housed or expand are limited. Under government rules, shophouses will no longer be built and the existing 1,400 heritage units at Boat Quay and Tanjong Pagar will remain fixed.
Hence, F&B operators will have to turn to ancillary retail space in office buildings, such as those in as SBF Centre, EON Shenton, Oxley Tower and V on Shenton. Collectively, these projects have 56,000 sq ft of ancillary space.
But the majority of F&B space is expected to come from large mixed-use projects with huge retail podiums. This includes the 100,000 sq ft Tanjong Pagar Centre, Marina One with 140,000 sq ft of retail space and the 170,000 sq ft OUE Downtown.
Moving forward, the F&B scene in the CBD is expected to grow due to an influx of office workers, local residents and tourists. The report noted that the working population in the Downtown Core area has surged to about 356,000 in 2013 from just 239,000 in 2003.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this and other stories, email nikki@propertyguru.com.sg
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