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  • CBD spending recovery underway, says CommBank

    CBD spending recovery underway, says CommBank

    Consumer spending across Australia’s central business districts has grown 22.4 percent in the last six months, with workers slowly returning to workplaces following the easing of Covid-19 restrictions.

    According to data from Commonwealth Bank, Gen X and older millennials aged between 35-49 led this spending increase across most CBDs, though Sydney and Melbourne saw spending growth mainly from younger millennials.

    This spending, recorded between September 2020 and February 2021, is compared to March to August 2020 – a period when most CBDs were effectively ghost towns due to the stay-at-home orders issued across the country.

    “We’re encouraged to see spending in our CBDs on the up, and we hope to see this trend continue as more people start coming back into city centers more regularly,” said Commonwealth Bank executive general manager of small business Claire Roberts.

    “Small businesses in CBD areas have had it really tough over the past year but we’re seeing encouraging signs of recovery.”

    The growth wasn’t even across the country’s cities, however. Perth led the way, with spending up 33.7 percent, while Sydney sat in the middle of the pack at 21.5 percent. Melbourne, still yet to recover from the longest lockdown period across the country, recorded just 2.36 percent growth.

    And while this growth is likely to welcome, the fact it is rising off an effective nil base means CBD retailers are not exactly out of the woods.

    “Our CBDs are not the thriving places they once were pre-Covid, and we need innovative ways to get people back supporting these hard-hit businesses,” said ARA chief executive Paul Zahra last month, when welcoming the City of Sydney’s hotel voucher scheme.

    “The office occupancy rate in the Sydney CBD is less than 50 percent. It means there aren’t as many people doing the things they would be normally, like grabbing a coffee from a nearby cafe, shopping during their lunch break, or having dinner and drinks in the city after work.”

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  • 4 Reasons to Consider CFD Trading

    4 Reasons to Consider CFD Trading

    Are you sitting at home wondering if this pandemic is ever going to get end? You’re not alone. There are millions around the world wondering the same thing.

    While this may seem like a dark time, for investors, it’s a fertile playground. As stock and shares rise and fall by the day, predictions about good investments seem to be sketchy at best, but there is hope.

    A Light in the Storm

    Consider that, right now, the travel industry is at a standstill. We know this won’t be the case forever: if travel companies can weather this storm, we’re sure to see a resurgence in travel (and a rise in travel shares) in the next few months and years. This could be a fantastic way to enter trading; however, if traditional investing doesn’t seem like your thing, then there are alternatives out there.

    CFD trading could be a great avenue to venture down instead. CFD trading is a popular way of speculating on the global financial market, including things like treasuries, commodities, indices, and currencies. 

    One of the biggest bonuses of CFD trading is that you’re not buying any assets, so you won’t be responsible for commodities or physical shares in a business.

    Reasons to CFD Trade

    Due to the fact that CFD trading is done on leverage, it’s a compelling option for many traders, especially those looking to get into trading for the first time. 

    There can be larger gains for smaller investments when doing CFD trading, and these can happen over a shorter period of time when compared to traditional stock market investing, making them a very attractive and popular choice for many.

    Do you need some more convincing? Here are a few reasons why you should consider jumping in with CFD trading.

    Flexibility

    CFD trading is done on a contract to exchange the difference in price between your opening position and your closing position. This allows you to trade on both a rising and a falling market, meaning you can choose the best time to buy or sell. In other words, this is a much more flexible option than traditional trading. However, it’s always worth going with a professional trading investment provider on this one to ensure you’re getting the most out of your investment.

    Market Diversity

    Have you always dreamed of being part of a diverse market? With CFDs, this is a huge possibility; in fact, there are over 16,000 markets that you can trade in. All kinds of options can be found, including indices, cryptocurrencies, commodities, and more.

    As an added bonus, CFDs allow you to trade outside market hours. This means you could have your finger on the pulse and take full advantage of the natural fluctuations that happen out of hours.

    Hedging Your Bets

    The flexibility of CFDs means you can hedge your bets on how the market may change. If you would like to stay in a certain market, but you can foresee a dip, CFDs will allow you to offset the dip against the future profits you hope to make.

  • The Global CBD Market: Will It Overtake THC?

    The Global CBD Market: Will It Overtake THC?

    CBD has come a long way since it was taken off the list of schedule 1 drugs a few years ago. It’s available online everywhere and in stores and dispensaries across the nation. It’s not only available in pharmacies like CVS and Walmart, but you can even buy it in stores like Abercrombie & Fitch and American Eagle Outfitters.

    There are also far fewer restrictions on growing and distributing CBD. Organically grown CBD from Oregon, for example, is becoming a widespread industry thanks to the integration of USDA regulations that help to monitor hemp growth and improve the final products. Colorado, Washington, Kentucky, and other states are also taking advantage of more lax industrial hemp laws to help turn the CBD market into a multi-billion-dollar industry.

    With the rapid growth and excitement around CBD, investors and fans alike are asking: Will CBD become more popular than THC?

    The answer to this question depends on who you’re talking to, but most of the evidence points to yes. CBD seems to be growing at an unstoppable rate, and the dollar signs just keep growing.

    2018 Began an Upward Swing for CBD Sales

    Market research shows that 2018 was the beginning of CBD sales as we know them now. The upward tick occurred even before the Farm Bill was passed at the end of the year, allowing more industrial hemp growth across the nation.

    During 2018, there was great political and media awareness of CBD, and that made consumers curious. When the FDA got involved and conducted a hearing on cannabis with more than 100 speakers sharing their opinions, that curiosity only grew. It increased sales just through simple curiosity.

    More than 10 percent of all dollars spent in a dispensary were spent on CBD in 2018, according to a BDS Analytics report. This was up 3 points from the previous year, a monumental growth in the industry.

    This was also the year that the creativity in the market started to explode. We went from having inhalable CBD and sublingual oil tinctures to having gummies, capsules, gel capsules, chocolates, coffees, and so much more.

    CBD to Be a $20 Billion+ Industry

    Multiple reports show that the CBD industry is slated to reach upwards of $20 billion within the next four years. BDS Analytics believes it will be worth $20 billion by 2024, which is 10 times what it was worth in 2018. Rolling Stone published a report recently stating that it would be a $22 billion industry, and other reports believe it will be worth even more

    Currently, the cannabis industry as a whole is worth about $52 billion with an anticipated growth rate of 18 percent. That means that CBD amounts to nearly half of all cannabis sales, and it could overtake current THC sales faster than you might think.

    Overall Consumers Seem to Prefer CBD

    When compared to the sales of CBD, THC seems to be far less popular than CBD. This could be because of the legal issues surrounding THC in certain states, but it’s more likely because CBD offers many of the benefits of marijuana without getting users high. For some, getting high is a nice perk, but for most, it’s very inconvenient to be high all the time in order to get the health benefits of the cannabis plant.

    CBD as an alternative form of medicine is very enticing to consumers. There are boundless claims to what CBD can do, and while we’re getting more research to play out the roles of CBD in human physical and mental health, the facts are still a little fuzzy on all CBD can do.But many consumers aren’t interested in the scientific facts about CBD. Rather, they like to hear what others are saying and how they feel with the substance in their systems. So far, the most common praises of the best CBD oil involve relief from the following ailments:

    • Anxiety
    • Pain
    • Inflammation
    • Depression
    • Epilepsy/seizures
    • Neuroprotection
    • Skin conditions
    • Overall health protection
    • Addiction recovery
    • Cancer symptoms treatment

    These claims are not groundless. We do have plenty of research on animals and some human trials that show positive results in these areas, and that’s enough for many consumers. They continuing buying CBD, whether or not it has a placebo or real effect on their systems. And these results are the reason why CBD has become so popular. Many people look for the best CBD balms, oils and other related products.

    The FDA’s Involvement Will Play a Large Roll

    Analytical reports on the state of CBD show that the FDA will be getting more involved in the future, and that could be a game changer for CBD. The FDA has been holding hearings and sponsoring research over the last couple of years to evaluate how best to get involved in the CBD market.

    The outcome of the FDA’s findings will be huge for the CBD market as a whole. If they deem CBD a useful medication and start regulating it like they do any other drug, the sales of CBD will skyrocket. Not only will consumers be more apt to purchase the products, but doctors will begin suggesting CBD to more patients.

    Big pharma will start buying up CBD and industrial hemp farms, laying out the groundwork for endless research on the product. They’ll develop medications and likely sell them at high price points, massively driving up the numbers for the CBD market. THC has played a role in pharmaceutical research, but the restrictions make it difficult for it to go mainstream, another way that CBD and THC markets differ.

    If the FDA determines that CBD should not be part of their federal regulations and that it’s more of a supplement, CBD sales will likely continue to grow at the same rate. Things will continue as usual.

    But if the government group decides that it’s harmful and starts marketing it as such, sales will no doubt plummet and CBD companies will be shut down all over the country. Thankfully for CBD users and those invested in the products, the chances of this occurring are very slim.

    This list of possibilities simply illustrates how the FDA has a great stake in the future of CBD. Any investors in the industry would do well to monitor the FDA’s stances on CBD during this coming year.

     

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  • Coronavirus Hits Singapore CBD

    Coronavirus Hits Singapore CBD

    Staff of major firms are being told to work from home and temperature screening and sanitation are being stepped up at many towers in the central business district as two cases emerge.

    The novel coronavirus outbreak in Singapore has spread to its financial district, with two employees at buildings in the area found to have been infected, «The Business Times» reported, citing circulars seen by the publication.

    The first, who contracted the virus on February 8, works at Marina Bay Financial Centre (MBFC) Tower 1, where Standard Chartered is a key tenant. DBS has offices in Tower 3. The building’s management said that affected office space, lifts and ground floor common area have been deep cleaned and disinfected in accordance with Ministry of Health guidelines, according to the report.

    The other, an employee of United Industrial Corporation (UIC), works at Clifford Centre. No other UIC employee has displayed any signs of the virus as of February 7, a circular said, noting the building has since been disinfected.

    The Monetary Authority of Singapore (MAS) issued an advisory urging financial institutions to adopt additional measures and precautions on Friday, the same day the city-state raised its response level to Orange, the same level as during the Sars epidemic in 2003.

    They include maintaining effective internal controls across operations should split team arrangements be implemented, anticipating and preparing for an increase in demand for services such as cash withdrawal or online financial services, informing customers of the availability of services and operating hours, and supporting staff morale.

    It also warned of the heightened risk of cyber threats as actors take advantage of the situation to conduct email scams, phishing and ransomware attacks.

    As a precaution against the novel coronavirus, UOB has closed two banking outlets in Shanghai and Beijing, the bank said in a media statement on Monday.

    UOB’s Commercial Banking Centre in Kwun Tong, Hong Kong remains closed until 14 February. Corporate customers are encouraged to use the Tsim Sha Tsui and Causeway Bay branches during this time.

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  • Sports Illustrated CBD product range to be launched by Authentic Brands Group

    Sports Illustrated CBD product range to be launched by Authentic Brands Group

    Authentic Brands Group (ABG), the owner of the Sports Illustrated brand, announced a strategic partnership with Sentia Wellness, a distributor of CBD-infused wellness products. Through this partnership, Sentia Wellness will develop, produce and distribute Sports Illustrated and Sports Illustrated Swim-branded CBD-infused topicals. A Limited-Edition Recovery Cream will debut this weekend, followed by a full rollout later this year.

    “Sports Illustrated has been at the forefront of sports and culture for over 65 years and is a name that resonates with the athlete and fan in all of us,” said Daniel W. Dienst, vice chairman at ABG. “We are excited to partner with Sentia, a leader in the wellness industry, as we continue to expand the Sports Illustrated brand and create trusted, high-quality consumer products.”

    “As we continue to develop products for active, health-conscious individuals who understand that there is so much more to sport than the game itself, it became clear that Sports Illustrated was the perfect brand to partner with,” said Amy McClintick, COO, licensed brands division of Sentia Wellness. “We are excited to see the initial response from consumers, and cannot wait for the full rollout of complementary products later this year.”

    ABG’s portfolio of brands generates more than $10 billion in annual retail sales and includes Marilyn Monroe, Mini Marilyn, Elvis Presley, Muhammad Ali, Shaquille O’Neal, Sports Illustrated, Dr. J, Greg Norman, Neil Lane, Thalia, Nautica, Aéropostale, Juicy Couture, Vince Camuto, Herve Leger, Judith Leiber, Barneys New York, Frederick’s of Hollywood, Nine West, Frye, Jones New York, Louise et Cie, Sole Society, Enzo Angiolini, CC Corso Como, Hickey Freeman, Hart Schaffner Marx, Adrienne Vittadini, Taryn Rose, Bandolino, Misook, 1.STATE, CeCe, Chaus, Spyder, Tretorn, Tapout, Prince, Volcom, Airwalk, Vision Street Wear, Above The Rim, Hind, Thomasville, Drexel and Henredon.

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  • RELX China flagship set to open in Shanghai

    RELX China flagship set to open in Shanghai

    E-cigarette company RELX Technology has opened its first RELX China flagship and says it aims to have 10,000 stores globally within three years.

    Located in Shanghai’s CBD, the RELX China flagship occupies a 140sqm area, creating a space to educate existing adult smokers and vapers on RELX vapor products.

    “Consumers nowadays prefer immersive shopping experiences, and we want to make this flagship a place where we can not only better communicate with them about our product and values but also better understand their needs,” said Wang Tao, head of RELX’s new retail business.

    According to Wang, RELX will launch stores in various cities, such as Beijing’s 798 art hub and Shenzhen’s Hai Gang Cheng, to provide what he describes as “avant-garde experiences” to consumers.

    The RELX flagship features four zones including a brand experience area, a consumer education area, an interactive zone, and a device-engraving service. The store uses a facial-recognition technology called Project Sunflower to identify minors attempting to enter the store. Customers also have to undergo another layer of verification to ensure their ID matches before making a purchase.

    RELX says it plans to invest RMB 500 million in establishing 10,000 stores globally over the next three years.

    “RELX is investing heavily in breakthrough technologies to enhance franchisees’ profit margins and increase consumer loyalty during the course of its brick-and-mortar expansion,” said Jiang Long, co-founder and head of sales at RELX. “As always, our focus will remain on preventing minors from using e-cigarette products and leading the path of innovation for the entire industry by developing advanced retail technology.

    Launching its first retail store last January, RELX China operates more than 1400 outlets across 300 cities.

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  • Institchu opens second Melbourne CBD showroom

    Institchu opens second Melbourne CBD showroom

    Tailored menswear brand Institchu has recently opened its second Melbourne CBD Showroom on Little Collins Street. The new 92sqm location, Institchu’s 11th showroom across Australia and the US, has a street frontage, the retailer’s signature old-world tailoring aesthetic, technology for customers to use to design their garments on, deep green velvet lounges and marble benchtops.

    Robin McGowan, Institchu co-founder, said the opening of the new Melbourne showroom is an exciting new chapter for the brand.

    “Melbourne, and particularly the thriving hub around Little Collins Street, is the spiritual home of fashion in Australia,” McGowan said. “It’s humbling to join that story and open our second Melbourne showroom, this one with street frontage, in this bustling cosmopolitan area, neighbouring so many of the world’s most innovative and sophisticated designers.”

    McGowan said while a lot of their sales were online it was clear to them that many of their customers appreciate the ability to visit a store for a personal fitting under the guidance of their stylists.

    Founded by Australians McGowan and James Wakefield in 2012, InStitchu helps men design their own custom, made-to-measure suits and shirts in minutes. Every garment ordered from the retailer is placed through their online store and is covered by Institchu’s Perfect Fit Guarantee.Adtech Ad

    Wakefield said they are thrilled that demand has encouraged them to invest in another physical location in Melbourne.

    “It’s particularly gratifying to be able to open in the beloved up-market shopping precinct of Little Collins Street and be able to service the menswear savvy communities of Melbourne,” he said.

    Institchu has showrooms in Sydney, Melbourne, Brisbane, Perth, Adelaide, Canberra and New York City. The retailer said it is planning further expansion this year, with an upcoming launch in the UK.

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  • Luxury CBD store opens in Manhattan

    Luxury CBD store opens in Manhattan

    A new luxury CBD store in the heart of New York City speaks volumes about where the fast-growing industry is headed as regulations are relaxed around the world.

    The 420: An Entertainment Hospitality Company has launched its first CBD-focused retail concept in Manhattan’s luxury shopping district, Soho.

    The 420: A CBD Store features a collection of premium, hand-selected products from top CBD and emerging luxury brands against a backdrop of bespoke art installations.

    “Over the next several years, our company will be taking a big stake in large-scale, cannabis-related hospitality entertainment across marquee locations throughout the world,” said The 420: An Entertainment Hospitality Company founder and CEO Robert Frey.

    “We believe CBD retail is the best place to begin to elevate the consumer experience. The space is ready for a new dimension of immersive luxury retail. We aim to provide the consumer with both established and undiscovered brands plus education through high quality seminars.”

    According to cofounder Eddie Miller, plans are already underway for six additional New York locations.

    The interior of the luxury CBD store features mid-century modern furniture, antiques and modern custom designed fixtures as well as a collection of finds acquired throughout New York City.

  • Digital Realty breaks ground on third Singapore data center

    Digital Realty breaks ground on third Singapore data center

    Data center, colocation and interconnection provider Digital Realty has commenced construction of its third data center facility in Singapore.

    The 12,800 square meter plot of land will be the foundation of Digital Loyang II (SIN12), an expansion and further development of a Digital Loyang Connected Campus.

    SIN12 will be located less than 25km from Singapore’s CBD and will capable of supporting up to 50 megawatts (MW) of IT capacity. The new facility will span a gross floor area of 34,000 square meters.

    The facility is expected to be operationally ready in the second quarter of 2020.

    Digital Realty has so far invested a total of $500 million developing its first two facilities in Singapore.

    “The development of SIN12 reaffirms Digital Realty’s commitment to supporting Singapore’s digitalization efforts and smart nation initiative,” Digital Realty CEO A. William Stein said.

    “As more global technology brands increasingly look to expand their digital footprint, Singapore remains their preferred destination. With the addition of SIN12 to our connected campus, customers will soon be given new ways to connect, extend their reach and find new business opportunities through our global data center platform.”

    SIN12 will also be incorporating sustainability features into the construction of the facility that aims to lower power usage effectiveness (PUE) to between 1.2 to 1.3, making it the best PUE in a commercial data center in Singapore.

    “Sustainability will also play a big role in the development of SIN12. Our vision is to build the greenest commercial data center within the region,” added Stein.

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  • Global legal cannabis market growth stable

    Global legal cannabis market growth stable

    The volume of the legal cannabis market is expected to soar nearly 14-fold within six years according to research by Euromonitor International. Legal cannabis sales reached US$12 billion globally last year with exponential growth ahead, will reach $166 billion by 2025, based on Euromonitor’s projections.

    The global cannabis market, both legal and illicit, stands at $150 billion today, according to the firm’s new white paper. By 2025, legal cannabis will represent 77 per cent of the global market.

    “Within 10 years, cannabis will be a regular part of daily routines,” said Zora Milenkovic, head of drinks and tobacco at Euromonitor International. “From a functional ingredient to an intoxicating buzz, cannabis will reshape fast-moving consumer goods, with food, beverages, beauty, health and tobacco having the most potential for disruption.”

    The greatest potential for cannabis is to capitalise on health and wellness trends that are shifting consumption habits and consumer preferences across industries.

    The growth of low- and non-alcoholic beverage consumption and the shift from cigarettes to vaping provide an opportunity for cannabis to replace alcohol and tobacco in social occasions.

    From 2018 to 2025, legal cannabis is estimated to grow more than 2000 per cent globally, compared to alcoholic drinks at 1.4 per cent and tobacco at 1.2 per cent, according to the report.

    In consumer health, Euromonitor expects vitamins and dietary supplements to be the largest cannabis-related category by 2025, with 2 per cent of sales to come from products containing THC or cannabidiol, better known as CBD. It projects global sales of packaged food with CBD to double over the next two years, further blurring the lines between consumer health and food.

    Last week a US analyst singled out Starbucks as one of the first major companies globally to adopt CBD ingredients in consumer products, however the Seattle-based company denied it had any plans to develop such beverages at this time.

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  • CapitaLand forms JV to acquire prime CBD in Shanghai for RMB2.75 billion

    CapitaLand forms JV to acquire prime CBD in Shanghai for RMB2.75 billion

    CapitaLand has formed a 50:50 joint venture with an unrelated third party to acquire approximately 70% of Pufa Tower in Shanghai, China, for RMB2,752 million (about S$546.3 million). The operational office property has been identified as a seed asset for a value-add fund which CapitaLand is setting up to invest in commercial real estate in key gateway cities in Asia. The acquisition also marks the Group’s first office property in Shanghai’s core Lujiazui central business district (CBD) in Pudong New Area.

    Pufa Tower is 34-storey tall with three basement levels of car park. Post transaction, CapitaLand and its joint venture partner will own levels 8 to 19 and levels 21 to 32 with a total gross floor area (GFA) of 41,773 square metres (sq m), as well as 61 car park lots with property title. Pufa Tower’s ground floor lobby and refuge floor on level 20 are co-owned with Shanghai Pudong Development Bank, which owns the rest of the building.

    Lujiazui CBD, where Pufa Tower is located, is Shanghai’s most coveted office location for financial and professional services companies. With an unabating demand for office space and limited new supply, Lujiazui CBD commands the highest office rents in the city. In view of a sharp decline in Pudong’s office supply from 2019, office rents in Lujiazui CBD are expected to continue trending upwards over the next few years.

    Mr Lucas Loh, President (China & Investment Management), CapitaLand Group, said: “We are pleased to enter Shanghai’s core Lujiazui CBD soon after securing our third Raffles City development in the city. Shanghai is the top investment destination in China, with strong end-user demand for commercial properties. The acquisition of Pufa Tower, an operational asset, will immediately contribute to the Group’s recurring income. It will also strategically diversify CapitaLand’s commercial portfolio into a key CBD to capture new growth, while entrenching the Group’s leadership as the foreign developer with the largest portfolio under management in Shanghai.”

    Mr Loh added: “Continual high demand for quality commercial properties in China’s top tier cities, coupled with low supply, have made the renewal of ageing commercial assets a compelling investment strategy in these markets. Pufa Tower is a prime asset to be seeded into the commercial value-add fund we are raising. We see significant potential in enhancing its asset value by upgrading specifications, tenant mix and improving operational efficiencies. By tapping on third party equity, we are driving capital efficiency to provide CapitaLand with the financial impetus to further accelerate our growth.”
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    Mr Puah Tze Shyang, Chief Investment Officer, CapitaLand China, said: “Pufa Tower has not had a major renovation since its completion in 2002. While the building is properly maintained, the interior finishes offer room for improvement. After acquisition, we will focus on extracting greater value from the property through a comprehensive asset enhancement initiative. Leveraging CapitaLand’s asset enhancement capabilities and track record, we are confident of rejuvenating Pufa Tower in ways that will increase and maximise the efficiency of this well-located property.”

    With more than 1,300 multinational companies headquartered in Shanghai, the city continues to power ahead as China’s financial and business centre. In 2017, Shanghai became the first Chinese city to top GDP of RMB3.0 trillion1, of which contribution from Pudong accounted for about 30%2. The continual expansion of Shanghai’s financial sector is expected to drive the demand for prime office space in Pudong2.

    Including this latest acquisition, CapitaLand now owns/manages 21 commercial properties in Shanghai that span close to 1.9 million sq m in GFA. Shanghai is part of the five core city clusters under CapitaLand’s China strategy, which comprises Beijing/Tianjin, Shanghai/Hangzhou/Suzhou/Ningbo, Guangzhou/Shenzhen, Chengdu/Chongqing/Xi’an, and Wuhan.

    In 2018, CapitaLand actively reconstituted its portfolio to enhance its readiness to seize new growth opportunities. During the year, CapitaLand divested close to S$2 billion worth of assets in China, including a group of companies that held 20 non-core retail assets. CapitaLand subsequently redeployed the capital into a mixed-use site Chongqing, one mixed-use site and two residential sites in Guangzhou, as well as a stake in Shanghai’s tallest twin towers – the Group’s third Raffles City development in the city – through Raffles City China Investment Partners III.

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  • Hanoi retail development spreading beyond CBD, says CBRE

    Hanoi retail development spreading beyond CBD, says CBRE

    Hanoi’s retail supply is growing outside the CBD area, reports real-estate company CBRE.

    With a total of 157,000sqm of retail coming from eight projects under development in fast-growing residential areas with good connecting infrastructure, CBRE says the suburban growth is expected to be attractive to both retailers and consumers.

    Malls inside residential complexes will continue to thrive, thanks to a high level of supply in the condominium market. Eight out of 12 future projects up to 2020 are retail podiums. “This format has certain advantages such as potential customers on site and increased traffic because of the residential component, providing extra services and amenities, and improving the image for the whole project,” says the CBRE report.

    The company predicts an emerging CBD will soon form in the western area of Hanoi. As the largest retail cluster outside the CBD with 41 per cent of total supply, the Cau Giay, Tu Liem and Thanh Xuan district will maintain its position in the next few years with 83,300sqm of supply in the pipeline.

    In the next three years, Aeon Mall Ha Dong, FLC and Vincom shopping centres will supply space to the east, while the north will have a new project from Lotte.

    The CBRE report also shows that only 7 per cent of total retail supply in Hanoi is in the CBD, and there has been nothing new since 2013. As a result, retailers have been finding alternatives in shop houses and old buildings around Hoan Kiem Lake (such as the first McDonald’s Hanoi), creating demand for more space.

    The CBD’s retail rent is predicted to rise in the coming years.

  • Nike’s opens new three-level flagship in the Sydney CBD

    Nike’s opens new three-level flagship in the Sydney CBD

    Retail Prodigy Group will open the doors to a three-level Nike flagship store at George Street in the Sydney CBD on Thursday morning.

    The new flagship is the first high street store for the brand in Sydney, situated in a heritage building that has been modernised for the new store. The ground floor is dedicated to men’s training and running, sportswear, the Jordan Brand and basketball in the basement. The first floor has been designated for womenswear, in the running, training and sportswear categories, plus a specialised bra fitting service and pant hemming.

    With a focus on running products, the store will feature Nike+ Trial Zones; an immersive space that features a Nike+ Run treadmill dedicated to trialling running footwear.

    In a Nike Australia first, the store also features sneaker cleaning and protection services.

    Brant Hirst, Nike marketing director told us that the vast amount of construction works currently underway in the Sydney CBD had not been a concern in the development of the new George Street location.

    “The heritage facade and multiple levels of the building provided the perfect canvas for a premium shopping experience for our customers,” he said.

    “Having a high street store in an emerging shopping precinct was also a major drawcard of the space.”

    Despite several commentators continuing to forecast the demise of bricks and mortar retailing, Hirst said the new flagship would be “powered by immersive product experiences” and in-store experts.

    “This store centres around elevating every athlete’s potential and offering customers personalised experiences, whether they’re training for a marathon, or want the latest in sports style.”

    When asked if we could expect to see more larger flagships in other locations across Australia and New Zealand, Hirst said that Nike was “always looking at ways to innovate and offer premium shopping experiences for our customers.”

    Nike also recently confirmed it is launching a pilot program to sell sneakers on Amazon, in a move to combat counterfeiters and unsolicited third-party sales conducted online.

    In a call with analysts, Nike CEO Mark Parker said that Amazon would carry “a limited Nike product assortment” of footwear, apparel, and accessories, and that the sports brand was seeking to improve its presence on the e-commerce site while also protect its brand reputation.

    Meanwhile, the race is on within sports retailing in Australia.

    British retailer, JD Sports currently has three stores trading in Australia at Melbourne Central, Pacific Fair on the Gold Coast and Parramatta in Sydney’s western suburbs. Two further stores will open soon at Miranda in Sydney and Highpoint in Melbourne.

    The Lancashire-based company has more than 1,200 stores under a portfolio of sports fashion and outdoor brands throughout the United Kingdom and Europe.

    Decathlon, the French retailer, has established an Australian online sales platform and expects to open its first store in the Sydney suburb of Tempe in October.

    The retailer has more than 1,000 stores in almost 30 countries and has notionally set a target of 100 stores for the Australian market.

    More recently, Super Retail Group decided to discontinue Amart Sports and convert its 65 stores into Rebel Sport as part of a consolidation strategy designed to defend against the entry of Amazon, Decathlon and JD Sports.

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  • Singapore commercial property faces a gloomy outlook. Here’s why

    Singapore commercial property faces a gloomy outlook. Here’s why

    The outlook for Singapore’s commercial property, including retail, office and industrial space, may have turned grim, according to forecasts from real-estate services provider Colliers.

    Singapore’s retail landlords and tenants face “challenging times,” Colliers said in a note dated Monday, forecasting demand for retail space to lag behind supply this year, with a rise in new space pushing up island-wide vacancy rates.

    Colliers said leasing activity slowed and rental declines accelerated in the third quarter amid poor retail sales and online competition.

    Singapore’s retail sales fell 1 percent in August on year overall and excluding the 30 percent jump in car sales, fell 6.5 percent, with drops in categories including jewellery, restaurants and recreational goods, according to official data.

    “In the near term, the uncertain economic outlook and heightened unemployment risk will probably be dampening factors on consumer spending,” Colliers said, although it expected the year-end holiday shopping season would mitigate the hit to retail sales.

    It forecast ground-level shopping-mall rents in 2016 would fall by 2.0-2.5 percent in regional centers and by 2.5-3.0 percent in the prime Orchard Road shopping belt.

    Singapore’s office segment may not fare much better.

    “Overall office rentals across Singapore continue to slide under pressure of oversupply and lacklustre demand as the market saw the fifth consecutive quarter-on-quarter rental decline in the third quarter,” Colliers said.

    “Underpinned by gloomier economic outlook from potential U.S. rate hikes, an uncertain Chinese economy and concerns on the repercussions of Brexit, business sentiments and overall office space expansion remain restrained,” it added.

    Colliers noted that Singapore’s preliminary gross domestic product estimate for the third quarter showed a 4.1 percent on-quarter contraction, with some economists saying a technical recession was a possibility.

    When it comes to office rents, grade-B office buildings were taking a bigger hit as tenants fled to better quality space, it said.

    “We expect competition among landlords to fill the backfill spaces, especially in older office buildings, to intensify over the next few quarters,” it said.

    Colliers forecast the office vacancy rate would surge, with premium and grade-A supply in the central business district (CBD) set to rise 5.6 percent this year and another 12.1 percent next year as more buildings were completed.

    It expected rents in that segment would decline by up to 3.0 percent in the fourth quarter, for a full-year decline of 7.0-12 percent.

    When it came to industrial property, Colliers advised it was an “opportune time” for tenants to evaluate their needs.

    “Given the tentative economic outlook, we expect industrial rents to remain soft over the next three to six months,” it said. “Coupled with the ample space options available, there will be opportunities for industrialists to secure choice business premises at competitive rents. ”

    It expected 20 million square feet of new industrial space to be added this year, pushing up vacancy rates island-wide.

    Colliers forecast that rents for prime multi-user conventional industrial space would fall 7.0-14.0 percent this year.

    Amid tough competition for tenants, it expected rents at independent high-specification industrial buildings located outside the science and business parks would fall further in the fourth quarter, for a full-year decline of 9.0 percent.

    But in business parks, it expected rents would rise a modest 1.0-2.0 percent for the year as higher rents were attainable at newer developments.

    Colliers noted, however, in the third quarter, landlords didn’t cut rents by much across industrial properties.

    Most landlords weren’t willing to cut rents by large margins in the period after sharp cuts in the first half of the year and were instead giving tenants more incentives, such as longer rent-free and fitting-out periods, covering alteration works and subsidizing repairs, it said.

    –Leslie Shaffer