The role of a mall operator is particularly important when a long-standing anchor tenant leaves, creating a large and visible vacancy.
There is reputational risk if mall operators take too long to backfill it, said JLL’s Dr Chua, adding that it could appear that the asset is not doing well.
“Nonetheless, it all presents an opportunity to the operator for it to reposition the asset or cut up the space into smaller units, bite-sized units that could command a stronger rent, but also implies more churn and high operational costs,” he said.
At Paragon, feasibility studies are underway to optimise and selectively reconfigure certain areas, including the space currently occupied by Metro, said CapitaLand’s Mr Yeo.
CapitaLand Integrated Commercial Trust recently acquired the mall in a S$3.9 billion deal.
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