Why this model is best. Sustainability, Brand owners need not worry about High rental, developers are assured and have no worries getting tenants.
Risks is shared between Brand owners and Developers. Developers have an advantage as they can control the retail mix, it will be very easy to find tenants especially there is a huge traffic in your retail malls.
There are so many opportunities for selection as long as you do not encourage Destruction Competition. Every Mall can be slightly different with different themes and type of goods and services, in both central or sub-urban areas.
Data collection will help you decide how successful you are able to maximise your profits and concepts. If you are creative and willing to take risks, I do not see you getting a lower return, instead a higher return over a longer period of 3-5 years with stability in income, rather than being wipe out in a month due to the corona virus.
Other than Digital Banks, I see this area gaining the greatest traction after a recovery from a lockdown as it will be easy for SMEs to return to profitability in the shortest time with the lowest costs as the risks of High rental is gone.
If this is done correctly, 65% of F & B outlets will start operating without an issue rather than seeing 40% close and never return, already 80% are already badly affected by business closures. Do you know the extend of how it will affect the entire Singapore economy. Just Changi Airport Jewel alone you can see the extend of this effect.
In this market conditions, speculating or flipping will get you into a lot of trouble, but if you buy or invest long term, there is always money to be made.
I do not see mortgage interests to raise very much and it will be affordable, just watch out for mortgage insurance which will marginally increase due to bad loans and people making claims.
There is always a control mechanism in place. Let me give you an example. If I own LV bags and I want to open a retail outlet at your mall, and every bag I sell I make $1000, and I sell 1000 bags a month, the profits derived is even higher than your highest rental so it will never work on 50/50, it all depends on your bargaining skills.
As in every business you need trust and transparency to share how you make money, if it is a trade secret, you will never accept this model.
IT expert with more than 20 years experience in Multiple OS, Security, Data & Internet ,
Interests include AI and Big Data, Internet and multimedia. An experienced Real Estate agent, Insurance agent, and a Futures trader. I am capable of finding any answers in the world you want as long as there are reports available online for me to do my own research to bring you closest to all the unsolved mysteries in this world, because I can find all the paths to the Truth, and what the Future holds. All I need is to observe, test and probe to research on anything I want, what you need to do will take months to achieve, all I need is a few hours.
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