F&B brands remain key drivers of retail leasing in Q3

However, supermarkets have been downsizing stores.

F&B brands drove the demand for retail leasing during third quarter (Q3) with a focus on space optimisation and opening smaller units, according to CBRE.

However, supermarkets have been downsizing stores and focusing on high-performing stores in recent quarters.

Demand for luxury spaces remains steady whilst beauty and health brands are driving demand in the downtown and Orchard areas. The monobrand sporting goods sector also continues to expand, albeit at a slower pace, and is mainly driven by new brands.

Meanwhile, secondary space is gradually being occupied by gaming and collectables retailers. 

CBRE said that whilst consumer spending remains resilient, landlords must be mindful of high occupancy and labour costs.