Retail leasing demand in Asia Pacific was subdued in Q3 2019. While most brands remained interested in prime locations, secondary space continued to suffer.
F&B expansion remained steady in major markets, led by coffee and tea shops, dessert outlets and casual dining establishments. Other sources of demand included luxury, with several brands seeking space outside department stores in Japan, Korea and Australia.
Department stores continued to struggle, with further closures in several markets announced this quarter. Some landlords are looking to replace them with entertainment-oriented retailers and coworking operators.
The outlook for 2020 is cautious with developed markets expected to see sluggish economic growth and consumer spending.