Benefits of Renting at a Bus Interchange
For years, people have dreamed of having their own store. I mean, who wouldn’t like to be their own boss, calling the shots in their own business? But these days, the dream of owning your own store feels more out of reach than ever.
Rising rental costs, online shopping, and fast delivery have made life hard for brick-and-mortar stores. Even big names like Robinsons had to close their physical stores and move online. But traditional shops are not dead — far from it. In Singapore, retail sales have recovered well, and shoppers still want that face-to-face touch that online stores cannot replace. You can see it every weekend at the heartland malls and interchanges — still packed.
The catch is location. If you end up in a lousy spot with high rent and no walk-in crowd, you won’t last long. That’s why more small business owners are now looking at renting at bus interchange locations. It’s not the first place most people think of, but it comes with real advantages. Here are the main ones.
1. Price
Stalls in bus interchanges may be smaller, but less floor space means less rent. With prime retail rents in Orchard now above $31 per square foot a month, a compact unit at an interchange is a much friendlier starting point for a small business. And depending on your business, you may find that downsizing doesn’t make much of a difference — a drinks stall or snack kiosk doesn’t need a big showroom anyway.
2. High Footfall
This is the big one. Renting at bus interchange locations gives you a constant stream of potential customers, every single day. Based on the latest LTA figures, an average of about 3.9 million passenger trips are made by public bus and about 3.5 million by MRT every day in Singapore — and a big chunk of these commuters pass through interchanges.
Average number of MRT passengers a day (in 1000s) (2015 to 2022)
Average number of bus passengers a day (in 1000s) (2015 to 2022)
That means every day, you’ll have tens if not hundreds of thousands of potential customers walking right past your unit. Many of them are rushing to work or school, so footfall matters a lot for any business. If you sell goods that cater to their needs — pre-packaged food, drinks, breakfast items, phone accessories — you’ll have no problem getting by.
3. Flexible Lease Length
If you want to rent a store in a mall, be prepared to commit. Most malls require a lease of around three years minimum. And if your business isn’t doing well and you try to leave before the period is over, be prepared to pay a penalty.
Bus interchanges, on the other hand, offer a more flexible lease agreement. When renting at bus interchange units, you can usually take your lease one year at a time.
So if business isn’t going well and you want out, it’s much easier to cut your losses and try again later. For a first-time business owner in Singapore, that lower commitment makes a big difference.
4. Easier Entry for Your Business Type
Even if you want to rent a store in a mall, have the money for it, and plan to stay long term, the mall management may still reject you. Maybe your store concept is too similar to an existing tenant, or they feel your shop doesn’t fit their mall’s image. If that happens, there’s not much you can do except look elsewhere.
You may find it easier to rent at a bus interchange. To be honest, we have rejected tenants before too — sometimes the unit doesn’t have the right facilities, or the store concept is too similar to an existing one — but we’re generally less stringent compared to mall landlords.
Conclusion
A bus interchange may not be the first place that comes to mind when looking for a small commercial space, but it’s an important part of every heartland community and always full of commuters. Lower rent, huge footfall, flexible one-year leases — for the right business, renting at bus interchange locations can be a gold mine if you know how to take advantage of it.
If you want to learn more about renting a commercial space at a bus interchange, contact us to learn more.
References
Average number of bus passengers a day (in 1000s) (2015 to 2022)
Link: https://www.statista.com/statistics/1006198/singapore-daily-public-bus-ridership/
Average number of MRT passengers a day (in 1000s) (2015 to 2022)
Link: https://www.statista.com/statistics/1006216/singapore-daily-mrt-system-ridership/
Monthly average daily public transport ridership (LTA, 2019 to 2025)