Exploring shophouse tenancy and how to secure the right tenants for your property
- Propnex Shophouse Elites
- Sep 10
- 3 min read
Conserved shophouses hold a special place in Singapore’s real estate market, not only for their historical and architectural value but also for their income-generating potential. Whether you own a row in Tanjong Pagar or a tucked-away unit in Geylang, finding the right tenant can make or break your investment strategy.
In this guide, we’ll walk you through why certain businesses are drawn to shophouses, how to attract the right tenants, and what smart landlords are doing to keep their units income-strong and future-ready.
Why shophouses appeal to today’s tenants
The charm of a conserved shophouse is undeniable. The ornate facades, timber windows, internal courtyards, and high ceilings offer a sense of character and authenticity that modern commercial buildings often lack. This is why the following groups are actively seeking out shophouse spaces:
F&B businesses: Cafés, restaurants, and bars thrive in high-traffic areas like Club Street or Kampong Glam. The ambiance and visibility these locations offer are hard to replicate in malls or office towers.
Retail & lifestyle brands: Boutique retail concepts, wellness studios, and artisanal grocers gravitate towards shophouses for their street-level access and neighbourhood charm.
Creative agencies: Design studios, architecture firms, and production houses are drawn to the open-plan layouts and "cool factor" of heritage properties, especially in areas like Telok Ayer or Chinatown.
Co-living operators: In places like Joo Chiat, larger shophouses are being adapted into modern shared housing concepts, offering both yield and demand stability for landlords.
These tenant types are willing to pay a premium for style, uniqueness, and a central or community-rich location.
Matching your unit to the right tenant
Not every shophouse is fit for every tenant. The right match depends on your unit’s zoning, layout, condition, and location.
Zoning rules: Know whether your unit is residential, commercial, or mixed-use. Commercial units allow more freedom and appeal to a wider tenant base, including foreign tenants.
Size and layout: Ground-floor units with frontage are gold for F&B and retail. Upper-floor units work better for offices, salons, or co-living. If your unit has a courtyard, staircase placement, or multiple access points, use that flexibility in your leasing pitch.
Neighbourhood character: In nightlife-heavy zones like Circular Road, tenants expect extended operating hours and weekend footfall. In quieter areas like Neil Road or Cairnhill, wellness and community-focused businesses tend to fit better.
Tips for securing long-term, high-quality tenants
Know the market: Stay updated on rental rates, tenant demand, and neighbourhood trends. A well-informed landlord makes better decisions.
Targeted marketing: Tailor your outreach. If your shophouse suits boutique fitness, reach out to studio operators directly.
Offer flexibility: Consider longer rent-free periods for new businesses, especially if your unit needs restoration. This builds goodwill and tenant retention.
Stage the space: A clean, well-lit unit always shows better. A bit of paint or staging can help prospective tenants visualize their brand in the space.
Due diligence: Check tenant references, licenses, and business plans. Secure deposits and clearly outline use terms and maintenance responsibilities in your tenancy agreement.
Securing the right tenant for your shophouse is part science, part storytelling. It’s about understanding your asset, reading market signals, and partnering with tenants who see the same potential you do.
If you own a shophouse and want to position it for the right kind of success, speak to the PropNex Shophouse Elites team. Our network of vetted tenants, deep market insight, and strategic advisory can help you make the most of your investment for today and for the years to come.
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