Solid leasing demand was recorded across the region in Q4 2017, led by the F&B sector. Faster expansion was observed among cosmetics, lifestyle and entertainment brands, while automotive companies expanded in shopping malls in selected markets as part of a move to improve their customer experience.
Fitness centres, particularly specialist and boutique gyms, continued to display robust demand for space in core locations, supported by growing consumer interest in health and wellness. Other active sectors within this segment include cycling and high tech sportswear.
While luxury sales continued to pick up region wide, sales growth did not translate into store network expansion. Most retailers are relocating to upgrade their premises and focusing on enhancing customer service and store efficiency.
Investor interest in the retail sector is growing as regional sales and tourism arrivals improve. Several neighbourhood shopping malls targeting non-discretionary spending were transacted during the quarter.