Retail property market sees significant boost in 1H23

As of end June, rents of High Street shops rebounded 8.2%.

Leasing momentum, particularly in core shopping districts, has picked up in a recent spike of retail sales, 21% YoY growth in the first five months of 2023. 

According to JLL, leasing activity in the first half of the year was dominated by mid-to-mass-end trades and food and beverage segments.

In the near-term, F&B, grocery, mass fashion and lifestyle trades as well as experiential retail will support leasing demand

“About 4 million sq ft of new retail supply is scheduled for completion by the end of the year. All of these projects are located in non-core shopping areas,”  Oliver Tong, head of retail at JLL said, 

“Whilst the abundant new supply could translate into some vacancy pressure to shopping centres, it is high time that landlords should adopt flexible leasing strategies to boost pre-commitment and establish competitive edges to attract shoppers by enriching tenant mix and by repositioning,” Tong added.