Asia Pacific retail leasing markets were quiet in Q1 2019 as most retailers adopted a cautious approach to expansion amid downcast sales performance
Demand was led by cosmetics and personal care tenants, which are increasingly sought after by shopping mall landlords due to their strong sales and ability to attract high footfall. F&B expansion remained steady, led by cafes, dessert outlets and casual dining establishments.
Weaker consumption is expected to inhibit leasing activity over the course of 2019. Economic headwinds will force a rethink of operating strategy, with retailers expected to slow their pace of expansion and focus more on enhancing the overall shopping experience.
Shopping centres and department stores will undergo renovations or repositioning exercises, such as introducing new store formats and experience-based offerings.