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The committed occupancy rate and rental prices at Suntec City Mall’s third phase remain low even despite the asset enhancement initiatives (AEI) carried out and obtaining its temporary occupation permit (TOP) in February 2015, revealed OCBC as cited in media reports.
“Despite the fact that Phase 3 will be opening soon, the committed occupancy rate stands at about 80 percent, although this is an improvement from the 70.5 percent recorded at end-2014. Leasing momentum has been sluggish, in our view,” said OCBC’s Andy Wong.
Aside from that, CIMB’s Xuan Tan revealed that the overall committed passing rent for the entire mall fell to $12.15 per sq ft per month after the third phase was completed. In comparison, the rent for Phase 1 and 2 stood at S$12.59 per sq ft per month.
While the remaining space of around 20 percent in Phase 3 mainly comprises prime ground-floor space, the rental prices for these premises are likely to be soft in light of the challenging retail outlook, Tan explained.
According to Suntec REIT’s management, the low rents and the sluggish increase in occupancy rate are attributed to the headwinds being faced by retailers. Given this, its main priority at present is to acquire the right tenant mix, it said.
Image: Suntec City (Source: Suntec REIT website)
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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