Leasing market in prime street segment turning more tenant-friendly

Landlords are becoming more flexible.

It has been noted that the leasing market in the prime street shop segment is becoming more tenant-friendly over the short- to medium-term.

According to a research note from Savills, this is because landlords have started to become more ‘realistic’ and flexible in their asking rents.

Market momentum is expected to pick up again when the rental expectation gaps between retailers and landlords close.

Here's more from Savills:

A rental correction is expected to continue in the prime street shop sub-market in 2015 and overall rents are expected to decline by 10% to 15%.

The shopping centre segment will be less affected and is expected to remain relatively strong with further rental growth in the range of 5% to 10% over 2015.