F&B operators drive retail leasing as 2026 demand strengthens

Prime retail rents are forecast to grow 1.5% to 2.5% in 2026 in Orchard Road and the suburbs.

Food and beverage operators are set to remain the main engine of retail leasing in 2026, with about half of new store openings in islandwide prime malls coming from F&B concepts so far this year.

Lifestyle brands are the next-strongest driver as landlords continue to push experiential retail formats.

Despite elevated churn, new-to-market entrants, especially Chinese retailers and F&B chains, are still expanding and backfilling space, helping keep overall demand firm.

The sales environment remains resilient: physical stores continue to dominate, online sales have settled at about 15% of total retail sales, and although consumers are more value-conscious, spending levels have held steady.

Operating conditions are mixed. Occupancy costs across major S-REIT portfolios have risen but remain below pre-pandemic levels, whilst tight labour supply and higher manpower costs continue to challenge F&B operators in particular.

Supply remains lean in the locations where demand is strongest. New retail completions are expected to average only about 0.3 million square feet a year from 2026 to 2029, and Tier-1 malls are near full occupancy, reinforcing landlords’ pricing power, especially in high-footfall Orchard Road assets and dominant suburban hubs.

Against this backdrop, prime retail rents are forecast to grow 1.5% to 2.5% in 2026 in Orchard Road and the suburbs, and 1.0% to 2.0% in other city locations, reflecting healthy retailer expansion and tight availability of quality space.

The two-tier market between top-performing malls and the rest is expected to widen further.

A NOTE FROM SINGAPORE BUSINESS REVIEW

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia