Retail Occupancy & Rental Rates Slide Further in Q3 2021: CBRE

• 21 October 2021
• International News
• 1514 Views

Three new community mall projects were completed during the third quarter this year with four new international retailers joining the market, while occupancy and the rental rates continue to decline due to the pandemic pressure, according to CBRE’s most recent report.

The completed retail projects are SCG Design Village, The Commune, and MC Park. Meanwhile, the four new entrances include Pizza 4P’s, Pizza Hut, 7-Eleven, and Big C mini.

During Q3, only 53% of the total anticipated retail supply for 2021 has been completed. This highlighted the difficulties in leasing up their projects as well as the myriad of delays caused by construction supply chain issues, the report added.

Occupancy fell back by almost 3.8% q-o-q to an average of 67.7%, with retail podiums under the most pressure from the pandemic, averaging just 45% occupancy.

On the other hand, F&B retailers continue to display the strongest demand, accounting for all store expansions witnessed this quarter, CBRE noted.

Meanwhile, the average quoted rents also decreased except for high street retail in Q3, at between US$20/ sqm to US$33/sqm.

Te Duong Vathana, CBRE’s Senior Manager of Retail Service, said that Phnom Penh’s retail market continues to adjust to the pandemic’s pressure and the quarter has been another uncomfortable one for many landlords.

• Analysis