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Retailers in Asia Pacific remain cautious amid worries over economic slowdown

Fast fashion and F&B groups continue to expand but luxury goods retailers remain inactive

New prime retail supply remains limited in most markets

AsIA PACIFIC Q3 2012

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Retailers remain cautious amid worries over economic slowdownLeasing activity in China continued to slow in Q3 2012 as weaker domestic growth and the poor global economic environment forced retailers to turn more cautious. Hong Kong also recorded weaker demand as retail sales growth slowed and spending by tourists from the mainland declined. Japan saw several new international retailer openings together with steady expansion from domestic retailers as demand remained firm. In Australia demand from retailers picked up slightly but the rate at which leasing deals were signed remained slow as occupiers remained conservative towards expansion. Major cities in India recorded steady demand for retail space as international and domestic retailers continued to open stores along high streets and prime malls despite concerns over the domestic and global economic outlook. Singapore also saw an increase in retailer activity. Despite the slight slowdown, the bulk of international retailers retain a long-term expansion strategy in key markets as they continue to look to the region to deliver growth.

Luxury brands generally quiet across the regionActivity by retailers in the luxury goods sector continued to diminish during the period with India the only location to witness noteworthy activity. However luxury retailers in that market continue to refine their strategy and product offering for the Indian market, which in selected cases has seen them consolidate and reduce the size of some stores. In Australia luxury retailers continued to perform well across the board but the lack of new retail space has meant they have been quiet in recent months. The weaker activity in this sector has been most evident in China; where the economic slowdown has forced many groups to narrow their focus to key cities after previously considering expansion to new tier III locations, and; Hong Kong, where demand has weakened further as brands reevaluate their strategy amid the slowdown in spending by tourists from the mainland. In Japan luxury retailers continue to record strong sales thanks to shoppers’ healthy appetite for premium goods but most groups are no longer expanding and instead prefer to improve on their current location, although space in which to do so is limited.

Fast fashion and F&B continue to expand steadilyInternational fast fashion retailers generally remained in expansion mode across the region during Q3 2012. Key cities in China witnessed a number of new openings and there is room for additional growth in this market from

existing players and new entrants given that consumers remain very price conscious. Japan and Singapore also saw retailers in this category launch new stores and many groups are now opening in suburban areas. In Australia international fast fashion brands are performing well but domestic groups in this segment are still struggling. Fast fashion retailers were also seeking opportunities to expand in Hong Kong but primarily in shopping malls as opposed to street shops. In India fashion remains the high growth sector and the major apparel brands from the United States and Europe continue to seek opportunities to enter or expand in major markets across the country, including some tier II locations. In Australia the F&B sector continues to outperform as consumers remain willing to spend on an experience and alternative forms of entertainment. However most growth in this sector is coming from the middle-end of the market and high-end restaurants have struggled to a certain extent as consumers spend less, particularly on expensive wines. In China several strong regional players which have established themselves in tier I locations are now exploring entry in tier II cities. International F&B outlets continue to expand in India, both at the fast food and fine dining end of the market, whilst the sector also remains a major driver of demand in Singapore with the period witnessing steady leasing activity by domestic and foreign names as they expand and test new concepts.

New prime retail supply remains limited in most marketsThere is a limited pipeline of new prime retail space in Hong Kong with most new supply generally in non-core areas and more suited to local retailers. A substantial volume of new stock is due to come on stream in China but much of this is in fringe locations more suited to existing mass market retailers as opposed to new entrants. In Tokyo there is a lack of space in core areas, most notably in Ginza, which has partly led to a fall in leasing deals. In Australia the cost of debt means traditional retail developers are not launching new projects although recent months have seen work resume on some new schemes. In Singapore the tight supply situation on Orchard Road is about to change with the injection of a large volume of vacancy as a French hypermarket chain exits the market whilst three new shopping centre developments come on stream. The lack of quality retail space in Mumbai continues to inhibit growth in that market but New Delhi is more welcoming as new supply provides opportunities for retailers to operate in an organised retail environment. Bangalore has a large quantum of organised retail supply in the pipeline although there is more of a focus on value and mass retailing in this market.

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groups had wanted to expand but simply could not afford the high rents demanded by landlords for space in prime locations and therefore had to move to non-core areas. This trend was particularly evident in the mass market fashion sector where big international retailers used their financial muscle to edge out local competitors for the best space.

Trends by Sector Demand from luxury goods retailers weakened further as brands reevaluated their strategy amid the slowdown in spending by tourists from the mainland. However the period still witnessed activity from other sectors although there were very few major moves completed. Multi-brand cosmetics and watch and jewellery retailers remained active in the key districts of Causeway Bay and Tsim Sha Tsui. In contrast shops selling second hand luxury items – particularly handbags – turned quieter during the period. Fast fashion retailers continued to seek opportunities and expand, but mostly in shopping malls as opposed to ground floor street shops as they had done in previous quarters. The F&B sector displayed softer demand during the period, in particular the more upscale Chinese restaurants.

Other Retail TrendsLandlords continue to merge multiple smaller units into one larger space in order to increase their appeal to major brands. Retailers are also demonstrating a preference for space in shopping malls as opposed to street shops. Proposals to reduce import tariffs in China – a move which some analysts believe would make luxury goods in mainland China more affordable and therefore impact on local retail sales – have not moved forward as quickly as had been expected.

Prime Retail Rental IndexDemand DriversDemand for retail space in Hong Kong weakened further in Q3 2012 as retail sales growth slowed and spending by tourists from the mainland declined as consumers became less willing to spend on big ticket items. Spending during the Golden Week holiday in early October was reportedly down by 20%-30% y-o-y. Retailers – particularly those in the luxury goods sector - became more cautious towards leasing prime space although the number of enquiries remained steady and most groups continued to monitor the situation. However the market remained quiet in terms of leasing transactions with the few agreed deals being signed at current market levels. Landlord sentiment softened during the period as many owners of retail space turned more willing to accept lower rents. Nevertheless the ongoing lack of space means rents are unlikely to fall significantly despite the weaker demand.

Geographical TrendsPrime locations had been the subject of intense bidding from overseas and larger domestic retailers in the first half of 2012 but recent months have seen a decline in the number of groups competing for such space. Nevertheless the retail mix in the main shopping malls and key retail precincts of Central, Causeway Bay and Tsim Sha Tsui remains unchanged and continues to be dominated by the luxury segment with very few general shopping centres remaining in these areas. Retailers catering to the PRC tourism market continue to dominate competition for prime locations but the level of enquires has tailed off with major luxury groups in particular less willing to pay above market rates to secure space. The supply of prime retail shops remains very limited, particularly along Canton Road in the Tsim Sha Tsui area of Kowloon, forcing many of the bigger international names to consider opening stores in shopping malls. Retailers catering to the domestic market are gradually being edged out of community malls such as New Town Plaza in Sha Tin in favour of luxury brands targeting mainlanders.

Trends By Nationality of CompanyInternational retailers have turned more cautious about the outlook for the Hong Kong market and many groups have put expansion plans on hold. Domestic retailers have also turned slightly less optimistic. During 2011 many such

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•Many retailers have entered wait-and-see mode and consolidation is expected. Rental growth is anticipated to level off further in the months ahead

• Retailers can capitalise on softer landlord sentiment by asking for lower than market rents for vacant space that becomes available

•However, supply remains limited as no retailers are surrendering space yet and no major leases are expiring

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fashion sector – continue to dominate demand. Recent quarters have seen activity from Australian retailers, mostly in the affordable fashion accessories sector. Interest from Korean groups in the fashion and electronics sectors has also risen in recent months. There will be a particularly strong surge of new international entrants at the end of 2012 and beginning of 2013 when several new projects are completed in Shanghai.

Trends by Sector Luxury brands had been considering expansion to new tier III locations but the slowdown has forced them to focus on existing markets. Fast fashion retailers continue to expand but at a slower pace than earlier in 2012. Nevertheless there is still plenty of room for growth in this segment from existing players and new entrants. Bridge brands and fashion retailers in the creative luxury sector are also expanding. In the F&B segment several strong regional players which have established themselves in tier I locations are now exploring entry in tier II cities. Children’s-wear is seeing a lot of interest from international groups attracted by the fact that consumers in this segment are less price sensitive compared to other sectors. Other active sectors include cosmetics although it remains complicated to register individual products for sale on the mainland which makes setting up a standalone store difficult.

Other Retail TrendsGroups from the United States and Europe remain very cautious in their home markets and are looking to Asia – and especially China - to deliver growth. However many retailers – particularly in the fast fashion sector – have overbought stock in anticipation of strong growth and are now stuck with a huge amount of surplus inventory. Some groups are looking to redistribute this stock by selling it online. A number of retailers are increasing the amount of capital they spend on their shop fit-out and are pushing for longer lease terms to get the most out of their investment. Several groups have succeeded in securing four-year leases instead of the usual three. Retailers in the luxury goods and mid-range fashion sectors continue to move away from the franchising model as the market become more transparent and developed.

Prime Retail Rental IndexDemand DriversLeasing activity in China continued to slow in Q3 2012 as weaker domestic growth and the poor global economic environment forced retailers to turn more cautious. The forthcoming leadership changeover in China and clampdown on luxury gift giving by government employees – which has seen luxury comp sales turn flat or negative with some more drastic decreases in specific sectors such as watches - further dampened retailer sentiment during the period. Although selected domestic and international retailers opened new stores in key markets, most groups have seen sales growth weaken in recent months and consequently have opted to be a lot more conservative in their expansion strategy. Retailers are now carefully identifying key markets and focusing on top requirements. However, despite the slowdown, demand for space in key areas continues to outweigh new supply.

Geographical TrendsInternational retailers continue to expand in Shanghai as new shopping centre supply comes on stream. Quality space in Beijing remains hard to come by, especially for the upper mid and top tier brands. Just one new high end mall in a core district is scheduled to be completed before the year end. Chengdu is an attractive market for luxury and accessible luxury retailers because of residents’ strong spending on consumer goods. However options to expand in this market are limited for the moment as major new projects will not open until next year. Shenyang and Hangzhou are also on international retailers’ radar whilst a number of luxury brands have lodged enquiries for space in Hefei. Retailers are also launching flagship stores in Guangzhou.

Trends By Nationality of CompanyChinese retailers continue to expand – particularly in tier II, tier III and tier IV cities - but are focusing more on setting up profitable stores by securing favourable commercial terms as opposed to launching high profile shops in core locations. A number of domestic groups are expanding abroad to elevate the profile of their brand. International retailers continue to account for the bulk of demand in major cities in China and are expanding steadily. Among them, brands from the United States - generally those in the affordable mass market

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• International retailers can differentiate themselves from the rest of the market by focusing on improving customer service standards and the overall shopping experience

•Many types of retail real estate in China remain underdeveloped such as airports, factory outlets and stations served by the new high speed rail network

• The overall outlook is reasonably positive with several new entrants lined up for 2013, particularly from the United States and Asia. However much weighs on how the leadership changeover plays out and if the situation in the Eurozone deteriorates further

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the right space in the right location. Japanese consumers’ continued willingness to spend on big ticket items has supported the steady expansion of European luxury brands in recent quarters. With their home markets remaining subdued European retailers are focusing strongly on Asia Pacific for expansion and Japan is a major focus.

Trends by SectorConvenience stores and drugstores continue to expand rapidly and are able to pay high rents and make leasing decisions quickly. Most luxury retailers continue to record strong sales thanks to shoppers’ healthy appetite for premium goods. However most retailers in this sector are no longer expanding and instead prefer to improve on their current location, although space in which to do so is limited. Domestic and international fast fashion retailers offering quality goods at reasonable prices continue to open in prime locations but so called moderate or mid-range fashion retailers are struggling to establish themselves. Large domestic department stores continue to consolidate by closing underperforming stores and moving away from their traditional format. The electronics sector continues to slow now that a government scheme providing incentives to purchase energy efficient goods has come to an end. Recent quarters have also seen new openings by international retailers in the high end footwear, sportswear, jewelry, housewares and leatherwear segments.

Other Retail TrendsAn increasing number of retailers are adapting to Japan’s ageing demographic profile and focusing on attracting wealthy elderly shoppers by adjusting the layout of their stores, product mix and opening times to cater to this portion of the market. Online retail continues to steadily increase its market share thanks to advances in mobile technology. However consumers still generally prefer to visit stores and do their shopping in person. Japanese consumers remain brand oriented and new market entrants continue to focus on securing space at street level in order to effectively establish themselves. Station retailing is gaining momentum with selected retailers – including one major international mid-range fashion group – opening small and medium sized stores in buildings attached to train stations.

Demand DriversJapan saw several new international retailer openings together with steady expansion from domestic retailers as demand remained firm. Major international names mostly in the fast fashion and F&B sectors continued to hunt for high quality space in prime locations whilst other selected groups were looking to open new stores in the suburbs. Retail sales grew by just 0.4% y-o-y in September compared to 1.7% y-o-y in August as the expiry of government subsidies for car purchases impacted consumer demand. Shoppers remain willing to spend on big ticket items but are increasingly concerned about the general economic situation. The lack of availability of space in core areas is another worry and has led to a fall in leasing deals. Most new schemes have already been fully leased.

Geographical TrendsDomestic and international retailers retain a healthy appetite for prime space in Tokyo during Q3 2012. In Ginza rents increased by an average of 1.7% q-o-q as vacant space on the periphery of the district continued to be filled amid strong competition for space. Availability of premium space in the area is slim and units sized below 300 sq. m particularly sought after, especially by local fashion boutiques. There are several new developments in the pipeline but completion is some way away. Rents in Omotesando were up by an average of 2.4% q-o-q thanks to the strong take up of space along main streets. Fast fashion retailers and home furnishing stores continue to open branches in suburban locations whilst outlet shops have been active in the same areas.

Trends by Nationality of CompanyRetailers from the United States and Eurozone continue to expand steadily and the period also saw an increase in new market entrants. Some groups are opting to open their first store in Asia Pacific in Japan whilst others have already established themselves in the region. However many of these groups continue to find it challenging to locate and secure

•Most retailers are now in wait-and-see mode and are planning for 2013. The limited availability of space means there are unlikely to be any new openings before year-end

• Rents in key retail submarkets across Tokyo should remain stable going forward and will begin to rise when availability in core areas tightens further

• The months ahead will likely see increased caution among consumers and retailers on the back of the weaker domestic and global economy

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Trends by SectorThe F&B sector remains a major driver of demand and the period saw steady leasing activity by domestic and foreign names as they expand and test new concepts. New establishments have been opening in core areas and edging out older competitors. Fast fashion brands remain active and major groups continue to expand into suburban malls. However many domestic brands in this sector are gradually being edged out of prime locations by smaller brands from Europe. Health and Fitness clubs – particularly the big global and regional names - are still expanding but it remains challenging for them to find the 15,000 – 20,000 sq. ft. spaces they require. Department stores continue to record steady sales but smaller local retailers in this sector are gradually disappearing from the local retail scene. Recent months have seen more activity from home furnishing retailers, particularly from foreign groups, thanks to strong demand for such products from Singapore’s increasingly affluent population which has a high level of home ownership. Luxury brands and electronics retailers remain quiet.

Other Retail TrendsThe labour market remains very tight and the shortage of staff continues to inhibit retailers’ expansion in some sectors, particularly in the high-end F&B segment where expertise is in short supply. The online retail sector continues to expand its market share and is posing a growing threat to retailers in the city given the strength of the Singaporean dollar. Recent quarters have also seen several online retailers open bricks and mortar stores. Franchising remains the preferred method of entry for international retailers seeking to enter the market or expand their existing footprint as Singapore remains a small domestic market. The growth in cineplexes attached to malls continues with new retail developments usually including a cinema or multiplex as landlords see it as a great way to draw in crowds.

Demand DriversQ3 2012 saw an increase in retailer activity in Singapore as several new flagship stores opened in prime locations along Orchard Road. However there was one notable withdrawal as a French hypermarket chain exited the market. Nevertheless retailers were active in most sectors and a lot of overseas groups – particularly those in the fast fashion and F&B segments - continued to evaluate market entry or and seek local partners. Retail sales growth and tourism arrivals continued to perform strongly although consumers remained cautious amid the weaker domestic and global economy. Landlords held rents firm with flexibility extended to new market entrants and desired tenants.

Geographical TrendsSuburban retail destinations continued to perform well and the period saw the opening of CapitaMalls Asia’s new mall Star Vista which contains several new-to-market F&B tenants and is reported to be 80% pre-committed. Jurong East continues to emerge as an alternative retail precinct with several mid-range international brands recently opening stores in Jem, Westgate and JCube. Occupancy in the precinct is now at around 85%. Average rents for prime Orchard Road were unchanged as landlords remained cautious despite steady growth in retail sales and tourist arrivals. However finding the right space in the right location remains challenging and even space in suburban malls is hard to come by. This situation will change in the near term as Orchard Road is about to see the injection of a large volume of vacancy as a French hypermarket chain exits and three new shopping centre developments come on stream.

Trends by Nationality of CompanyDomestic retailers continue to be focused around the department store format and are trading well. Singapore continues to see activity from European, American and Australian fast fashion brands which have already tested Hong Kong and China and are looking to set up Southeast Asia flagship stores. Smaller fashion retailers and bridge brands from the Eurozone have also been active in recent months. French and Italian luxury brands remain inactive with most having completed their expansionary moves back in 2010 when the major new additions to Orchard Road stock and the new casino developments came on stream.

• The outlook is slightly weaker and leasing demand is expected to decline to due to the deteriorating sentiment around the domestic and global economy

• Future supply is significant and will put pressure on vacancy, although rents are likely to remain stable. The new stock will provide retailers with plenty of opportunities to secure attractive space

• Landlords continue to be supportive of new entrants and are often willing to take on new groups at initially lower rents to share some of the risk and support their market entry

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recently lodging enquiries. Recent quarters have also seen a number of well established international mass market brands enter tier II locations, partly due to the lack of space options in tier I markets. Additional new entrants are likely in the coming months. Activity from domestic retailers, particularly in tier I locations, has slowed slightly in recent months and many groups have adopted a wait-and-see strategy amid increasing competition from international groups and the slowing domestic economy.

Trends by SectorLuxury retailers remain focused on tier I locations but continue to refine their strategy and product offering for the Indian market, which in selected cases has seen them consolidate and reduce the size of some stores. Fashion remains the high growth sector and the major apparel brands from the United States and Europe continue to seek opportunities to enter or expand in major markets across the country, including some tier II locations. International F&B outlets continue to expand, both at the fast food and fine dining end of the market. 2013 looks set to see activity by the major international supermarket names. Domestic home furnishing companies and supermarkets remain in expansion mode in metro cities. Electronics is another growth sector.

Other Retail Trends51% foreign direct investment (FDI) in multi-brand retail was finally approved in September paving the way for global supermarket giants to make their long awaited entry into India. The new policy is intended to allow major international retailers such as Wal-Mart, Tesco and Carrefour to partner with a local operator and sell directly to Indian consumers. The new policy imposes a number of conditions on groups wanting to invest in India and actual implementation has been left to individual states, meaning that local governments not in favour of the measures can opt out if they choose. The move has already encountered strong opposition from small retail businesses who fear their livelihoods may be at risk from the entry of global retail giants to the supermarket sector. Nevertheless, the new measures have been hailed as an important step towards attracting increased foreign involvement in the Indian retail sector and transforming what is still largely an untapped and unorganised market.

Demand DriversMajor cities in India recorded steady demand for retail space in Q3 2012 as international and domestic retailers continued to open stores along high streets and prime malls despite concerns over the domestic and global economic outlook. The period saw a steady flow of enquiries from new to market brands - particularly in the apparel and F&B segments - eyeing the Indian market in anticipation of the impending approval of FDI in multi-brand retail, which was eventually given the green light in early September. Although several overseas groups blocked space in new projects there were reports during the period of selected retailers turning slightly more cautious as consumer spending weakens further and the domestic economy slows.

Geographical TrendsMumbai has seen a steady flow of enquiries from premium international brands focusing on the more affluent southern parts of the city. Despite the catchment and potential of this market the lack of quality retail space continues to inhibit growth. Nevertheless most international groups continue to launch their first Indian store in Mumbai – usually in a street shop - before expanding elsewhere. New Delhi is more welcoming as new supply provides opportunities in terms of footprint setup and platform launch for retailers to operate in an organised retail environment. The city has attracted several overseas F&B chains to open new stores in recent months although high-street formats continue to dominate the retail landscape. Most luxury retailers in the city continue to prefer to operate from five star hotels and premium mall developments with dedicated luxury zones. Bangalore has a large quantum of organized retail supply in the pipeline although there is more of a focus on value and mass retailing in this market. Domestic big box retailers are gradually expanding to tier II locations but the major foreign names remain focused on tier I cities.

Trends By Nationality Of CompanyMajor cities continue to witness steady expansion by international luxury goods, apparel and F&B retailers and the rate of new openings is expected to increase in the new financial year with a number of major fast fashion groups all

• The outlook is optimistic as the festival season approaches and activity is expected to pick up further in 2013 thanks to the new FDI regulations on multi-brand retail

• International retailers should reserve space in forthcoming Grade A shopping mall supply so as not to miss out on opportunities for further expansion in key markets

• Street shops on core high streets will offer significant opportunities to retailers looking for steady pedestrian footfall and stable rents

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market share, particularly in the fast fashion and apparel sectors, and domestic retailers are finding it challenging to compete on price. Online retail has further supported the growth of international retailers as it has helped introduce new and exciting brands to consumers, test the market and remove geographical barriers.

Sector TrendsInternational fast fashion brands are performing well but domestic groups in this segment are still struggling. The sector as a whole should receive a boost as the eastern seaboard shifts back to a normal weather patter after a particularly cold winter and wet summer. Other domestic retailers in the bulky goods and electronics sectors continue to have their margins squeezed with price deflation impacting on the latter group of retailers particularly hard. Many domestic department stores are looking to decrease the size of some of their stores and give up some space. Luxury retailers continued to perform well across the board but the lack of new retail developments has meant they have been quiet in recent months. Pet supplies retailers have been expanding rapidly in recent months as have recreational retail categories. The food and beverage sector continues to outperform as consumers remain willing to spend on an experience and alternative forms of entertainment. Other active sectors include large format furniture stores, housewares, active leisurewear and fitness centres.

Other Retail TrendsThe trend for more retailers to buy land and develop their own stores continues as traditional retail developers and REITs are unable to secure financing to develop new projects. However recent months have seen work resume on several new retail developments a number of major REITs commit to extensions on existing assets. Shopping centres continue to perform well but high streets are struggling as they are predominantly occupied by local fashion retailers including many independent stores which are finding it particularly tough. The operators of several larger malls have revised their tenant mix in recent quarters to include more F&B offerings and cinemas in order to increase footfall.

Demand DriversDemand from retailers picked up slightly in Q3 2012 but the rate at which leasing deals were signed remained slow as occupiers stayed cautious. Retail sales were steady and consumer confidence turned slightly more positive as shoppers were generally cautious but still willing to spend on entertainment and experience-oriented retail. Overseas retailers recorded steady sales and a number of groups opened new stores whilst there continued to be sustained interest from new overseas players looking at market entry. Selected domestic groups have now completed consolidation exercises and are now looking at careful expansion. The new carbon tax has yet to have any noticeable impact.

Geographical TrendsLeasing activity in Sydney picked up slightly and the city remains the number one market for international retailers entering the country although trading conditions remained challenging amid weak consumer sentiment. The period saw the beginning of a trend for retailers in the city to quit expensive shopping malls and take up cheaper space on strip malls and high streets. However, the rate at which leasing deals were being signed remained slow as retailers are still cautious. International groups continued to express a strong interest in prime CBD locations in Melbourne whilst high streets in the city are performing well as they’re dominated by cafes and restaurants which helps drive trade to other retailers. Brisbane is seeing a return to confidence after the floods in 2011 and the completion of the Wintergarden refurbishment has attracted a strong mix of high profile national and international retailers. Adelaide continued to attract strong interest from brands looking to establish a secure foothold in anticipation of future growth whilst luxury goods and fast fashion sectors accounted for the bulk of activity in Perth.

Trends By Nationality Of CompanyThe performance of international and domestic retailers continued to diverge with the former trading well and the latter struggling to cope with the strong Australian dollar and outbound tourism. However some domestic groups are expanding overseas and performing quite well in markets in Asia and the United States. Foreign groups continue to grab

• The outlook is improving and consumer confidence should return to positive territory before the end of the year. The sharpest part of the downturn is now over and the retail sector has already digested a major downshift in growth

• Australia remains an attractive destination for international retailers. New openings are performing very well and fuelling demand for additional stores

•Margins in the domestic market continue to shrink for Australian retailers in the electronics, bulky goods and fast fashion sectors but some groups are finding success in expanding overseas

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Asia Pacific Contacts

Country Contacts

Asia Pacific Research Contacts

Sebastian SkiffExecutive DirectorRetail, AsiaBeijingTel: +852 6335 2023 +86 156 260 79333Email: sebastian.skiff@cbre.com.cn

Phoebe MroczekManagerRetail, AsiaBeijingTel: +86 86 10 8588 0888Email: phoebe.mroczek@cbre.com.cn

Nick Axford Head of Research, Asia PacificHong KongTel: +852 2820 8198Email: nick.axford@cbre.com.hk

Kim MercadoDirectorHong KongTel: +852 28202800Email: kim.mercado@cbre.com.hk

Jonathan HillsAssociate DirectorHong KongTel: +852 28202881Email: jonathan.hills@cbre.com.hk

Hong Kongjoe LinSenior DirectorRetail ServicesHong KongTel: +852 28202966Email: joe.lin@cbre.com.hk

China Joel StephenAssociate DirectorRetail Services, Retailer Representation GroupShanghaiTel: +8621 2401 1375Email: joel.stephen@cbre.com.cn

India Vaibhav MahurkarHeadRetail ServicesNew DelhiTel: +91 11 4239 0200Email: vaibhab.mahurkar@cbre.com

This was report was prepared by CBRE’s Asia Pacific Research Team, which forms part of CBRE Global Research and Consulting - a network of preeminent researchers and consultants who collaborate to provide real estate market research, econometric forecasting and consulting solutions to investors and occupiers around the globe.

© 2012 CBRE, Inc. CBRE statistics contained herein may represent a different data set than that used to generate National Vacancy and Availability Index statistics published by CBRE’s Corporate Communications Department or CBRE’s research and econometric forecasting unit, CBRE—Econometric Advisors.Information herein has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or repre-sentation about it. It is your responsibility to independently confirm its accuracy and completeness.Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the market. This information is de-signed exclusively for use by CBRE clients, and cannot be reproduced without prior written permission of CBRE.

COnTACTs

JapanShina FukuiSenior AssociateRetail ServicesTokyoTel: + 81 3 5470 8800Email: shina.fukui@cbre.com.jp

SingaporeLetty LeeDirectorRetail ServicesSingaporeTel: +65 6326 1230Email: letty.lee@cbre.com.sg

Australia Josh LoudonRegional DirectorRetail Services, Australia & New ZealandSydneyTel: +61 2 9333 3382Email: josh.loudon@cbre.com.au

Alistair PalmerDirectorBulky Goods, AustraliaSydneyTel: +61 2 9333 3396Email: alistair.palmer@cbre.com.au