Inside Asian Gaming

inside asian gaming December 2014 28 on the peninsula opted for the equivalent of seven mall shops. With a combined third-quarter occupancy rate of 96.6% at Sands China’s malls it may have taken Forever 21 the better part of forever to get that much space in Cotai. Sands China’s success will see all six casino concessions incorporating sizable retail components in the next wave of resort development on Cotai, leaving some to wonder if the added space will be more than Macau can absorb. It’s the “eternal question in the retail real estate industry,” says Mr Parker. “There is no science to the evolution of a retail market: they need to expand and contract by testing the limits of the consumers they serve. As Macau continues to mature, it will find its equilibrium, provided market forces remain unfettered by outside influences.” Others criticize the Cotai malls for their lack of local flavor and blame it on high rents. He disputes that as well. “The lack of local retailers in Cotai’s casinos has nothing to do with the rents and everything to do with the retail plan for the casinos,” he says. “Casino owners don’t start out thinking about rent and who can pay it, they start with a plan of what the shopping environment will feel like, what retailers will it ideally comprise, then they go about leasing it accordingly. The casino owners are international companies looking to create an international experience with international retailers.” Instead, Mr Parker, who was president of Taubman Asia when it was slated to build the mall for the initial Studio City Macau partnership on Cotai, envisions a “next horizon” for Macau retail, one that offers something inspirational for both tourists and residents. “This will likely occur outside the confines of a casino project but leverage the transport infrastructure and natural attributes of Macau,” he says. “The scale, planning and management of such a venue would need to be outstanding to achieve mass appeal.” including 20,000 square feet on its mezzanine level to create seven duplex shops. The $2.7 billion Parisian, which will open in phases beginning late next year, plans to unveil 320,000 square feet of shopping with some 150 outlets in the first quarter of 2016. Sands Retail says Parisian will be positioned as a “hub for creative luxury … targeted at a fashion-forward, affluent demographic”. About 85% of the space is already rented, “snapped up much faster than we expected,” says Mr Sylvester. Parisian, combined with the full build-out of Cotai Central’s retailing, will position Sands China with 850 shops on Cotai encompassing more than 2 million square feet. Editor at Large Muhammad Cohen also blogs for Forbes on gaming throughout Asia and wrote “Hong Kong On Air,” a novel set during the 1997 handover about TV news, love, betrayal, high finance and cheap lingerie. Feature In Focus Shoppes at Sands Cotai Central Rendering of Shoppes at Parisian The average retail rent at Shoppes at Four Seasons more than doubled last year, from $150 to $348 per square foot. The reason is that “the world’s highest grossing luxury mall,” according to Sands Retail, registers by far the highest sales per square foot among Sands China’s retail properties.