Retail leasing demand in Asia is subdued in third quarter 2019

Retail leasing demand in Asia Pacific was subdued in third quarter 2019. Although most brands remained interested in prime locations, secondary space continued to suffer, reported CBRE.

Food and beverage expansion remained steady in major markets, led by coffee and tea shops, dessert outlets, and casual dining establishments. Other sources of demand included luxury, with several brands seeking space outside department stores in Japan, Korea and Australia.

And department stores continued to struggle, with further closures in several markets announced in the third quarter. Some landlords are looking to replace department stores with entertainment-oriented retailers and co-working operators.

The outlook for 2020 is cautious, with developed markets expected to see sluggish economic growth and consumer spending.

To read the full report, click here.