According to CBRE, the retail leasing market remained active in Q1 2010. *scape announced that it is 80 percent pre-committed ahead of its June opening while the new Basement Two linkage from Raffles City to Esplanade was reported to be more than 63 percent pre-let ahead of its July 2010 opening.

Prime retail rents remained relatively stable in Q1 2010. Prime Orchard Road rents averaged $32.20 psf/month, down 0.7 percent from that in Q4 2009. The pace of prime Orchard Road rental decreases has slowed compared with the previous four quarters in 2009. Rents declined by 3.3 percent in the first quarter of 2009, by 2.9 percent in the second quarter, by 3.0 percent in the third quarter and by 1.5 percent in the last three months of 2009. Prime suburban rents remained stable at $28.10 psf/month, unchanged from Q4 2009.

Letty Lee, Director, Retail Services, CBRE Singapore said “The Orchard Road retail scene has evolved in the last 12 months, in part by the supply that has come onstream and the quick recovery from the global financial crisis. The slowdown in the rental decline is a good sign that Orchard Road shops are holding up fairly well at this stage in the recovery.”

CBRE also reported that F&B operations continued to flourish. It said that there are more 24-hour grocers, gourmet markets as well as shop-cafes and all-day breakfast outlets. With the increased demand for F&B spaces, CBRE also reported upside increases in rents for such spaces, prompting tenants to exercise prudence before committing to spaces.

The consultancy firm said it will be an interesting year ahead, as this part of the world eagerly awaits the opening of the two integrated resorts. The expectations are up for an even wider array of shops and retail experiences with the entry of more new-to-market labels and international brands - many of these are looking at Singapore as a springboard into the Asia market.

The imminent opening of phase two of the Circle Line (CCL) from Bartley to Dhoby Ghaut will have an impact on retailers and shoppers. The 11-kilometre stretch comprises 11 stations and will effectively facilitate islandwide mobility and re-distribute shopper traffic. CBRE expects higher traffic at Kallang Leisure Park, Millenia Walk and Marina Square.

Investment transactions in the quarter comprised mainly left to right pocket sales. In January, Frasers Centrepoint Trust (FCT) announced plans to acquire two new malls from the Frasers Centrepoint Mall stable, for $290.2 million, boosting the Trust’s portfolio size to $1.5 billion. Both Northpoint2 (85,530 sf) and Yew Tee Point (72,382 sf) will be purchased at $164.55 million ($1,924 psf) and $125.65 mil ($1,736 psf) respectively. Both malls are located near major transportation nodes like bus interchanges and MRT stations. The deal is expected to be completed by July 2010.

In February, CapitaMall Trust (CMT) bought Clarke Quay from Clarke Quay Pte Ltd for $268.0 million ($910 psf). The riverfront F&B, lifestyle and entertainment destination has a NLA of 294,610 sf.

Sun Plaza adjacent to the Sembawang MRT station is available for sale via expression of interest (EOI). The EOI will close on 12 April 2010. The development comprises a five- storey retail podium with two basements with a strata area of 231,000 sf. The residential tower blocks above the retail podium are not included in the sale.