CBD-centric retail amenities continue to attract retail establishments. Despite the hybrid working trend and the shorter operating hours, retail businesses are drawn to the high spending power of professionals and executives in the CBD. This appeal will expand further with new office developments and promising pre-commitments for upcoming builds in the supply pipeline.
Key retail trades and concepts entering the CBD
F&B establishments typically dominate the F&B-retail trade ratio in CBD-centric retail amenities. Over the past year, a wave of these establishments have continued to enter the CBD, predominantly quick-service restaurants and casual dining concepts. At CIMB Plaza, Sanger (a sandwich bar) opened in 1Q24, while Chaffic (a bubble tea operation from Australia), Bamboo Bowl (an eatery serving healthy Asian bowls) and Harvey’s by Panamericana (a takeaway lunch concept) began operations in 3Q24. Tim Hortons, a Canadian coffee chain, opened at One Raffles Place in 2Q24.
Following an asset enhancement initiative at 112 Robinson Road, Kyo Kohee also opened an approximately 2,000 sq. ft. café in the office building lobby in 3Q24.
Asian (Chinese) F&B concepts have also entered the CBD. For example, Chengdu Bowl, a Sichuan-style multi-concept eatery that opened in mid-2023 at 120 Tanjong Pagar Road, has since expanded to several locations in the CBD, namely Ocean Financial Centre, Marina One, and IOI Central Boulevard. Hunan cuisine restaurant chain Nong Geng Ji opened its first outlet in Singapore at Collyer Quay Centre in 4Q23. Hundred Grains opened at Asia Square in 1Q24, and Wow Fish opened at CapitaSpring in 3Q24. In October 2024, the popular Chinese milk tea chain Chagee expanded to the CBD on the ground floor of One Raffles Place.
Apart from F&B establishments, aesthetic medical and health, beauty & wellness concepts have continued to expand or enter the CBD-centric retail market. In 3Q23, Parkway Shenton relocated its clinic in a CBD office building to a larger outfit at Republic Plaza, spanning approximately 11,000 sq. ft. of retail space, offering primary care, health screening, radiology, and rehabilitation services. In 4Q23, a medical aesthetic clinic, Skinscape Clinic, opened in Asia Square. In 3Q24, Rekoop, a social wellness club offering curated rejuvenation services, including oxygen therapy, infrared saunas, and ice baths, opened at 18 Robinson Road.
Car showrooms have also raced into the CBD. In 1Q24, Porsche Studio Singapore opened a two-floor 8,500 sq. ft. space at Guoco Midtown that houses a showroom, a lifestyle boutique, and an on-site café in collaboration with Baker & Cook. Additionally, BYD opened its showroom at 77 Robinson Road. By 4Q24, Audi will open its showroom on the ground floor of Cross Street Exchange.
Looking ahead, CBD-centric retail amenities will remain sought-after due to the growing concentration of a high-spending CBD workforce that underpins retailer demand and attracts new retail concepts. Rents, however, could be constrained by retailer profitability due to the hybrid working trend and shorter business hours.
More on 'Retail' in 'Singapore'
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