SINGAPORE: Several businesses at Parkway Parade have closed or downsized as rising rents put pressure on tenants. Despite the recent opening of the Marine Parade MRT station in June last year, some tenants raised concerns about foot traffic, while others who noted there was more foot traffic in the area said there was no corresponding increase in sales.
The Straits Times reported that at least one of the seven tenants who vacated the 42-year-old mall last year noted a rent increase of up to 30 per cent. Marks & Spencer, which has been in the mall for over 20 years, will also close this Sunday, Feb 16, as it refines its store portfolio to focus on key locations and its online business in Singapore.
Among those facing rent hikes were Ole Ole, a Malay kueh stall that operated for over 30 years, and Putien, a home-grown restaurant chain that closed its outlet in September 2024 after 15 years. Other closures include Go Noodle House, Dyson’s demo store, 7-Eleven, Treasures Yi Dian Xin, and Gadget Solution, a retailer of game consoles and mobile phone accessories.
Gadget Solution’s owner, 41-year-old Mr Xu Hwa Heng, closed his store in January 2025 after his rent rose by up to 30 per cent to about S$14,000. He said foot traffic did not increase even after the MRT began operations, and with the basement entrance near his shop closed for linkway construction, his business would have suffered even more.
Long-time tenants still operating are also struggling with rising costs. Pavilion Optics & Contact Lens Centre’s owner, 69-year-old Mr Tang F.Y., said his rent has increased from S$3,500 in 1983 to over S$15,000 today.
Meanwhile, Nanyang Optical, which had been in the mall’s basement for over 40 years, moved to a smaller unit on the same floor after food outlet Beard Papa’s took over its former corner space in June last year.
The Lens Men, one of Parkway Parade’s first shops since December 1983, moved to Block 83 Marine Parade Central after a rent hike in December 2019. Isetan department store, which also opened that year, left in 2022 after failing to extend its lease.
According to Jenny Khoo, head of retail and workspace management at the mall’s management Lendlease, rental adjustments are based on factors like market demand, tenant performance, and economic conditions.
The Straits Times reported that while Ms Khoo said Lendlease aims to support long-time tenants while keeping the mall vibrant and competitive to meet changing shopper needs, she did not confirm the reported rental hikes.
Alan Cheong, executive director at Savills Singapore, said it’s common for landlords to raise rents in anticipation of new amenities.
He noted that tenants in popular malls, like those at Parkway Parade, may see rent increases after new attractions open. Businesses near these malls, like those at Block 83 Marine Parade Central, have also experienced rent hikes of around 10 per cent, which can be tough for smaller businesses and lead to profitability concerns.
He added that suburban mall rents stayed largely flat in 2024; however, consumer spending has dropped as more workers returned to offices and more people travelled.
Shoppers have reportedly noticed more international brands, like Paris Baguette and Tim Hortons, replacing long-standing stores in the mall. Some said Parkway Parade no longer feels the same.
“I had a lot of memories here, but almost all of the older shops have closed down,” said a 62-year-old retired education officer who used to frequent the mall.
Meanwhile, others who are just getting by, like 62-year-old Mr Lim Cho Kheng, owner of Princess Jewellery Store since 1986, said, “I hope business will improve in one or two years,” noting that if rents continue to rise, he may have to retire. /TISG
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