THE IMPACT OF COVID19 ON LEASE MANAGEMENT OF SHOPPING MALLS IN SINGAPORE

Abstract

This study provided a qualitative analysis on the impact of COVID19 on mall tenants and shoppers. Majority of prior research has been done on the quantitative aspects, such as looking at changes at rental and vacancy rates. Thus, this study seeks to be the first to provide research on operational impacts on mall tenants. Firstly, the study also examines in detail the impact of COVID19 from a shopper’s perspective, such as the reasons why they frequent malls less during the pandemic. Secondly, performance between suburban and urban malls were not measured in fall in rental rates and vacancy rates, but rather from shoppers’ preference. Thirdly, the study also focuses on the operational challenges F&B tenants face during the pandemic. Upon analysis of findings, reasons for reducing frequency to the mall were categorized into 4 reasons - COVID concerns, transition to online consumption, resistance to leave homes and hassle of restrictions. Each of these reasons have implications on mall managements, hence, suggestions were given to tackle these solutions. The survey findings have also shown that different age groups have different attitudes towards malls during the pandemic and supported literature review that suburban malls are more resilient to the pandemic as compared to urban malls, due to their locational advantage. Although at the time of writing, the pandemic is almost over and restrictions are easing up in Singapore, however, these solutions are good for mall managements to keep in mind in the event of another pandemic.