\n<\/p>\n
But analysts said real estate investment trusts (REITS), which own many shopping malls in Singapore, are generally more cautious about adopting flexible leasing models.<\/p>\n
REITS are investor groups who pool together funds to own and run properties, with the goal of ensuring stable incomes and long-term growth.<\/p>\n
This year, major REITs have reported positive rental reversions – meaning\u00a0leases are renewed at higher rates than before.<\/p>\n
For example, property manager Lendlease\u2019s retail portfolio achieved a positive rental reversion of 8.9 per cent as of Sep 30 this year.<\/p>\n
\u201cFor the REITs, because they do have certain internal benchmarks that they have set \u2026 they like stability, so a majority of their leases will still be based on a permanent lease structure,\u201d said Mr Hsu.<\/p>\n
\u201cBut they will also be able to weigh what percentage of their leases can operate on a more flexible structure, so that they can also use that to rejuvenate the kind of tenant mix that they want to have within the mall,\u201d he added.<\/p>\n
Lendlease – the developer behind several malls like 313@somerset and Jem – said finding that balance between stability and novelty is an ongoing process.<\/p>\n
Lendlease\u2019s retail and workspace management head Jenny Khoo said if the company has plans to enhance offerings at its malls, it could ask tenants to contribute.<\/p>\n
\u201cWe may approach the tenants to ask, \u2018Would you consider to scale up, scale down, or \u2026 bring in additional offerings from international or even homegrown brands?\u2019 They may have some other brands that they are in the midst of curating that could (coincide) with our planning,\u201d she added.<\/p>\n
\u201c(For) permanent retail space, we will see what are the shoppers\u2019 needs and wants within the communities before we have put in any of the offerings.\u201d<\/p>\n<\/div>\n