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Several Parkway Parade mall tenants leave or downsize amid rising rents
Marks & Spencer will be closing its Parkway Parade store on Feb 16 after more than two decades at the mall.ST PHOTO: JOYCE LIM
Joyce Lim and Sheo Chiong Teng
UPDATED FEB 13, 2025, 08:26 PM
SINGAPORE - British retailer Marks & Spencer will be closing its Parkway Parade store on Feb 16, marking another major departure from the 42-year-old mall in Marine Parade.
Its impending closure after more than two decades at the mall comes amid rising rental costs and ongoing concerns about foot traffic among tenants at the shopping complex, which opened its doors in 1983.
At least seven other tenants have vacated in the past year, with at least one citing rental increases of up to 30 per cent, following the opening of Marine Parade MRT station on the Thomson-East Coast Line in June 2024.
These are Ole Ole, a Malay kueh stall that had been at the mall for more than 30 years; home-grown restaurant chain Putien, which closed in September 2024 after 15 years; eatery Go Noodle House; household appliance firm Dyson’s demo store; convenience store 7-Eleven; restaurant Treasures Yi Dian Xin; and Gadget Solution, which sells game consoles and mobile phone accessories.
Despite the increase in foot traffic reported to some of the retailers by the mall’s management Lendlease, they told The Straits Times they have not seen a corresponding increase in their sales.
The ongoing construction of an underground linkway to Marine Parade station from the mall’s basement, due to be completed in 2027, is also expected to affect business further, said the tenants.
Marks & Spencer, which opened its second-floor store at Parkway Parade in May 2004, told ST that its upcoming closure is part of an ongoing effort to refine its store portfolio and focus on key locations and the online business in Singapore.
Although the company did not specify how many staff would be affected, a spokesperson said: “We are committed to supporting all affected colleagues through this transition. This includes offering opportunities for redeployment to other stores or roles, where possible, as well as providing resources and assistance.”
Mr Xu Hwa Heng, 41, owner of Gadget Solution, which was on the basement level, said his rent was raised to about $14,000 – a 30 per cent hike – when his lease expired in January 2025.
After nine years of running the business at Parkway Parade, he decided to close shop, citing the unsustainable rental costs.
“Even after the MRT started operation, I didn’t see a rise in footfall. Now, with the basement entrance facing my shop closed (to facilitate the construction of the linkway), my business would have suffered. It would be hard for me to survive if I had to pay such high rent,” said Mr Xu.
Next door, Mr Tang F.Y., who runs Pavilion Optics & Contact Lens Centre, said: “Each time my lease is renewed, the rent goes up. For older businesses like mine that rely on loyal customers, a significant rent increase is a real struggle.”
Mr Tang, 69, said that since he started his business in December 1983, his rent has climbed from $3,500 a month that year to more than $15,000 now.
Responding to queries from ST, Ms Jenny Khoo, head of retail and workspace management at Lendlease, said rental adjustments take into account factors such as market demand, tenant performance and overall economic conditions.
“Responding to changing market preferences, Lendlease aims to strike a balance between supporting long-time tenants and ensuring the mall remains vibrant and competitive, with a tenant mix that caters to the evolving needs of shoppers,” she said, without confirming the extent of the rental hikes reported by tenants.
Isetan department store, which also opened its store at Parkway Parade in 1983, exited the mall in 2022, after saying that negotiations with the landlord for a further extension of the lease “did not yield a positive result”.
Nanyang Optical, located at the basement of the mall for more than 40 years, downsized to a smaller unit on the same floor, with its former corner space taken over by food outlet Beard Papa’s since June 2024.
Officially opened in 1984, Parkway Parade was one of Singapore’s first major and biggest suburban malls at the time. The integrated office and retail development has more than 250 stores located across seven levels.
The mall, a strata-titled development with multiple subsidiary proprietors, is indirectly owned by Parkway Parade Partnership (PPP), which holds 77.09 per cent of the retail strata lots. In 2023, Lendlease Global Commercial Reit (LReit) acquired a 10 per cent stake in PPP.
Income Insurance is Parkway Parade’s largest investor, with close to 50 per cent ownership of PPP.
Some shoppers have noticed a shift in the mall’s offerings.
Insurance broker Wimala Fu, who lives in Marine Parade, said Ole Ole was the “definitive Malay kueh cafe for Parkway patrons for several decades”.
Now, the shops at Parkway Parade are all generic and there is nothing special about them, he added.
“We have only Paris Baguette and Tim Hortons, neither of which has any cultural ties to the community,” said Mr Fu, referring to the South Korean cafe chain and Canadian coffee house brand, respectively.
Instead of going to the mall three or four times a week like he used to, the 43-year-old now patronises the mall just once or twice a week to buy groceries.
Ms Linda Tan, a 62-year-old retired education officer who used to frequent Parkway Parade before moving to Tampines, also noted the changes.
“I had a lot of memories here, but almost all of the older shops have closed down,” said Ms Tan.
Why linkway to Parkway Parade is being built after opening of Marine Parade MRT station Marine Parade Community Building and its mural wall to go, despite calls to retain them
Housewife Tara Chia, 52, said she goes to Parkway Parade at least twice a week, “mainly for grocery shopping and makan”.
“Now that there’s the Paradise group of restaurants, I go there with my family more often for our meals,” said Ms Chia.
Mr Alan Cheong, executive director of research and consultancy at Savills Singapore, said it is not uncommon for landlords to raise rents in anticipation of new amenities.
“Tenants in popular malls who have been thriving before the opening of new attractions will naturally face the potential of landlords upping their renewal rents,” said Mr Cheong.
Like the tenants at Parkway Parade, shops near the mall are also facing rent increases. Some businesses at Block 83 Marine Parade Central have also seen rental hikes of about 10 per cent, which are a challenge for smaller businesses.
The rental hikes may lead to issues in maintaining profitability for tenants. Only time will tell if the higher rents are justified, he added.
Mr Cheong pointed out that suburban mall rents remained largely flat in 2024.
He explained that with more workers returning to offices and increasing overseas travel, consumer spending in suburban malls has dropped.
For some longstanding tenants of Parkway Parade like Mr Lim Cho Kheng, owner of Princess jewellery store since 1986, the situation is uncertain.
While he has seen increased foot traffic since Marine Parade MRT station opened, he remains cautious.
“Business is just enough to get by. I hope business will improve in one or two years,” said Mr Lim, 62.
If rents rise too much when his lease expires in 2026, he may have to retire, he said.
Mr Lim believes his store’s focus on custom jewellery helps him compete with larger chain stores, but he still depends on regulars to sustain his business.
Similarly, Mr Patrick Chong, 60, owner of Yuen Loong watch store which has been at the mall since 1984, said most of his customers are regulars.
“We’re still serving the same customers. If rent continues to rise, I would have to wind up.”
