Chart of the Day: Check out where upcoming retail spaces will be located

More than 60% will be established in suburban areas by 2018.

The retail space market is set to see around 1.8m sq ft. of space to be completed by the end of 2017, Moodys investors service said in its latest report. By the said time, around 50% will be put up in suburban areas, while around 25% will be located in Fringe areas. Retail space in suburban areas are bound to increase by 2018, where around 60% of upcoming launches will be in.

"Although the suburban retail space pipeline will be spread across different neighborhoods and cater mostly to the non- discretionary spending, we expect retail space located near transportation nodes with large residential catchment to see better leasing demand," the report noted.

However, it argued that weak business and consumer sentiments will hurt demand for these retail spaces.

"We expect retail occupancy and rental rates to remain under pressure over the next 12-18 months but the degree of impact will vary across different retail sub segments. An uncertain economic environment is hurting business and consumer sentiments, which in turn weigh on leasing demand even as new supply continues to come on-stream," the report explained.

It furthered, "We expect the take-up of new retail space to be slow, as retailers remain cost sensitive and cautious on expansion."

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