SINGAPORE: More retailers in Singapore are turning to short-term leases and flexible store formats, with one in five now opting for leases of less than a year instead of the usual three- to five-year contracts—an increase of roughly 10% from last year, Channel News Asia (CNA) reported, citing the Singapore Retailers Association (SRA).
This comes amid shifting consumer habits and rising expenses.
Notably, landlords have become more open to the flexible structure, with some reserving units for pop-ups year-round.
Priyanka Shahra, company founder of sustainable fashion firm Swapaholic, said the short-term lease allows them to “experiment” with how to fit into the mainstream retail environment, measure impact, and gather insights before committing long-term.
Analysts, however, warned that shorter tenures often come with higher costs. Ethan Hsu, head of retail at Knight Frank Singapore, said landlords typically charge higher rent per square foot for these leases to cover higher vacancy and turnover risks.
Still, some malls, such as CQ @ Clarke Quay, are embracing the trend by designating units for pop-ups and niche concepts like dog grooming and swimming gyms.
Evelyn Soh, general manager of CQ @ Clarke Quay and Funan, said the strategy keeps the retail environment vibrant and diverse and attracts shoppers throughout the day.
Analysts noted that real estate investment trusts (REITs), which own many malls, remain cautious, favouring stability and long-term leases to meet internal benchmarks and provide steady returns, though they may allow some flexibility to rejuvenate tenant mixes.
