Prices of retail space soar but rents stay flat
Published on Oct 4, 2012 5:41 PM
Rental values of prime retail space in town and the suburban areas were flat for the third quarter of the year, after growing modestly in the second quarter.
On the other hand, capital values soared - which led to the strongest quarterly yield compression seen in the past year.
In a report today, consultancy DTZ says that retailers remain cautious about committing to new retail space because of the slowdown in regional economies.
Ms Anna Lee, DTZ's director of retail, says: "Amid the cautious sentiment, retail landlords are continually introducing new international retailers who can bring in shopper traffic... This does not mean higher rents, as (they) are also cost conscious and not necessarily willing to pay such high rents."