Wolf Money(Office and retail space demand)

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SHARES OF OFFICE LANDLORDS SURGE ON EXPECTED RETURN OF OFFICE WORKERS

Office

I find the BT headline puzzling. Did the landlord start charging rental by number of people returning to office? Against popular belief of a recovery in demand for office space. I predict multi years of sub par demand for office space due to WFH,hot desking and co working trend continuing after covid 19. A source close to me had indicated their company plan of slashing office use by 50 percent within the next couple of years. CFO must be thinking why do we need to pay millions and millions of dollars to keep my employees in office. WFH and hot desking will cut office use by 50 percent. In process saving company millions. Mind you. That is only for one company, imaging many companies right sizing their office needs. Food for thot? Office? What For Huh?




Retail

There is an introduction of code of conduct for leasing of retail premises in Singapore 

In June 2020, a Fair Tenancy Pro Tem Committee was set up under the auspices of the Singapore Business Federation. The Fair Tenancy Pro Tem Committee comprises representatives from both landlord and tenant communities, members of Government, industry experts and academia.

One of the objectives of the Fair Tenancy Pro Tem Committee is to jointly develop a Code of Conduct for Leasing of Retail Premises (“Code of Conduct”) to set out clear leasing guidelines and negotiation principles for landlords and tenants of Qualifying Retail Premises (QRP) in Singapore.

Summary 

The introduction of the code of conduct is long overdue for the long suffering retailers operating in a highly competitive market. High unreasonable rental agreement is part of the problem which cause a lot of retailer to go belly up. For people interested in the code, click the link below. In short, landlords will have less room for big rental increase which mean less profit going forward. I had a walk around in one of those popular shopping mall in the city. Third and fourth levels are seeing more leasing notices. The code might be the extra headache retail landlords have to deal with beside competition from internet shopping. Food for thot? Shopee

https://www.sbf.org.sg/images/Code_of_Conduct_for_Leasing_of_Retail_Premises.pdf


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All investments is highly speculative in nature and involves substantial risk of loss. We encourage our reader to invest very carefully. We also encourage reader to get personal advice from your professional investment advisor and to make independent investigations before acting on information that we publish. Much of our information is derived directly from information published by companies or submitted to governmental agencies on which we believe are reliable but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way whatsoever warrant or guarantee the success of any action you take in reliance on our statements. All information provided are for education only. Buyer beware,do you own due diligence.


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