60 AL-SALAM REIT 3. RETAIL T he convergence of physical and online retail has boosted sales performance, especially in the apparel and grocery retail categories. Established retail malls located along busy highways are receiving good footfalls such as The Mall @ Midvalley Southkey, Paradigm Mall, AEON Bukit Indah and Angsana Mall, maintaining a healthy occupancy rate and positive market sentiment. O verall malls are experiencing a decrease in vacancy rate which stood at 35% in the review period. The Commune at Indahpura , Kulai (200,000 sq. ft.) witnessed its groundbreaking in June 2022. Horizon Mall in Horizon Hills (150,000 sq. ft.) and The Gem @ Coronation Square, Johor Bahru City Centre (1.2 million sq. ft.) are planned for opening by 2024. The Larkin Junction and D’Pristine Lifestyle Mall in Johor have been completed but are yet to start operation. J apan-based Nitori(household and furniture), opened in The Mall @ MidvalleySouthkey, while Lulu Grocer and Hoops Station (sport & entertainment) opened in ToppenShopping Centre. In May 2022, Iskandar Malaysia (IM) welcomed the first Watsons (personal care category) drive-thru store in TD Central, Taman Daya, spanning about 5,000 sq. ft. Other features include its partnership with a ZUS Coffee outlet and its move towards sustainability through the iCyclecampaign. M alls in Batu Pahat have yet to regain their footing. Hence, shoppers are turning to online platforms, creating opportunities for physical and online collaborations. F&B shops in Taman Setia Jaya, Taman Flora Utama and D’ Garden Business Park regained their customers. The market also saw the completion of a standalone restaurant by Loon Sing Group, located along Jalan Masjid in Batu Pahat old town. (Extracted from CBRE/WTW Market Outlook Report 2023) 20.0 15.0 10.0 5.0 0.0 50% 40% 30% 20% 10% 0% Supply and Vacancy Rate of Malls in Iskandar Malaysia Supply (million sq.ft.) 2016 2017 2018 2019 2020 2021 2022e Total Space Abbreviation: sq.ft.- square feet Source: CBRE WTW Research Vacancy Rate (%) MARKET REPORT SUMMARY
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