F&B continues to drive maximum lease demand: CBRE Report

CBRE has come up with Asia Pacific Retail Trends Q1 2017 report. Following are the key findings from the report:

·         Overall demand continued to be led by F&B retailers. The quick service, coffee shop and café categories are the most active segment at present, with steady leasing activity reported in both shopping malls and along high streets.

·         Retailers in mid-range fashion category displayed strong demand for the prime spaces in New Delhi, Mumbai and Bangalore.

·         Other drivers of leasing demand in recent quarters have included sporting goods and consumers electronics retailers.

·         There continued to be limited demand from luxury retailers as most groups are content with their existing store network.

·         The growth of online retail is exerting a negative impact on the department store sector and forcing many groups to consolidate and reduce their store size.

Six Month outlook & opportunities

·         The completion of new shopping malls in key cities will facilitate entry and expansion by international retailers.

·         F&B will remain the key demand drivers , with domestic group increasingly prominent.

·         Retailers will continue to adopt an omni-channel strategy consisting of an online offering in tendem with physical store.