Tenancy mixes on food and beverage (F&B) in shopping malls are on the rise, driving up rental during the quarter, according to Vo Thi Phuong Mai, head of Retail at Cushman & Wakefield Vietnam.
Over 40% of tenants in The Estella Place are F&B brands. Golden Gate, Red Sun and Mesa Group are anchor tenants while Vincom Retail continues to expand their reach across the country by acquiring Fivimart, a 23-supermarket chain in the north, Phuong said.
Retailers are ready for revising the tenancy mix at shopping malls as well as inefficient lines, she noted.
In addition, middle class and fast fashion brands continue to target the Vietnamese retail market. In 2019-2020, French Decathlon and Japanese Uniqlo plan to open their first stores in Hanoi and Ho Chi Minh City, Mai added.
Thanks to high demand for retail space, the vacancy rate fell to 6% in Q3/2018 from 11% in the same period last year, Cushman & Wakefield Vietnam’s report showed.
The vacancy rate varied among different submarkets like department store (5.7%), shopping center (7.0%), retail podium (10.1%), and bazaar (6.1%).
The average asking rent was among US$32.1/sq.m/m for retail podium, US$48.8/sq.m/m for shopping center, US$73.1/sq.m/m for department store, and US$172.7/sq.m/m for bazaar.
According to the report, a number of big projects namely Crescent Mall – phase 2, Aeon Mall Tan Phu (expansion), and Elite Mall are under construction and will be available for sales in 2019 and 2020, supplying a total of 120,000 sq.m.
Meanwhile, the retail stock in Q3/2018 was recorded at more than 1.26 million sq.m, up 2.2% on quarter and 6.6% on year, whereas, the overall occupancy rate grew 1 percentage point on quarter and 4 percentage points on year to 93%, showed the report.
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