If 53 tenants decided not to renew, time to worry?

If you did not know, WCT Holdings is the builder of the Paradigm Mall in Kelana Jaya and KLIA2. The ‘airport within a shopping centre,’ like what has been mentioned by many people sarcastically. To be honest, I seriously think all airports should follow this design. Whether it’s a mall within an airport or the other way around, it’s important that airports are lively and have lots to see, do and SHOP. Yes, I am considered a shopaholic. I used to drop by Paradigm Mall every week when I was still staying next to it. I like it’s design and I think there are more than enough shops for me to shop and even dine.
Well, there’s a negative news recently with regards to Paradigm Mall. 53 of its tenants or 18% have decided not to renew their tenancy two months ago. This has left gaps which are still not filled. According to WCT Malls management Sdn Bhd’s general manager Vincent Chong, replacing these tenants can take as quickly as one month to as many as 5 months. The positive news is that the anchor tenants have all renewed their tenancy agreements. Of course current market is also getting tougher too. Read here: Retail numbers and credit cards spending down but..I think one most important anchor tenant has to be Tesco’s. I never fail to visit it every time I am there. Besides trying to get new tenants, they have also been talking to the 53 to reverse their decision.
Personally, I think when the renewal is due, there are bound to be shops which would decide not to renew either because of business or perhaps because of a higher rental rate. As everyone would have noted, the number of malls are also increasing and this would of course increase pressure on all existing malls. However, it is important that the vacant units be filled up as soon as possible. Imagine visiting a mall where there are vacant units everywhere you look, would you feel good? The more interesting shops, the more shoppers and more shoppers meant more potential retail business and thus more tenants queuing up for a lot.
I think Paradigm Mall has quite a good catchment area. It’s own residential towers in the future as well as the existing condos beside and nearby. It has also been quite pro-active in organising many events which helped to boost number of visitors during weekends too. The current time is a challenging one. Read here: Tough to do business these days; malls too many If it can fill up most of the units within the next few months, I think it’s still positive. the next renewal period is definitely some time away. Happy visiting!
written on 14 Aug 2015
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