Retail Market Breakdown - November 2018
Welcome to Tenant Leasing Group’s breakdown of the retail market for November, 2018!
This month we took a deeper look at new developments and planning policies that will affect businesses in 2019. It’s been a huge year with positive changes to planning policy encouraging jobs and growth in Western Sydney through improved zoning and public transport. We also note the increasing attention paid to Australia’s logistics sector! Exciting things are happening around Sydney’s waterfront with upgrades to Circular Quay and the Fish Markets following the success of Barangaroo. The new access to technology and data for retailers is great news for Bricks and Mortar businesses. And things are happening with Amazon Pay.
Planning Your Property Portfolio In 2019
As this year nears its end, despite pre-Christmas madness, it’s an exciting time to plan ahead. This time is often crucial goal-making time for growing and ambitious businesses. Planning to open 3 stores in the new year? Grow by 25%? I’ve put together some strategic considerations for businesses regarding new developments, key events and policy changes that may be of relevance. There are, as always, complex and sometimes contradictory factors changing areas and timelines in the major metros, and regional hubs for that matter. Are you prepared? Read the full article (12 minutes).
Dexus Sees Value In Logistics
Developer Dexus has teamed up with Singapore’s sovereign wealth fund GIC to invest $2 billion into Australia’s growing Logistics sector. GIC Real Estate Chief Investment Officer Lee Kok Sun said the investment reflects GIC’s confidence in the long-term potential of Australia’s logistics sector: “We believe the structural and consumption growth in Australia, particularly from favourable demographics and growth in e-commerce, will continue to drive demand for logistics properties”. It’s been commented on already that e-commerce is driving demand in industrial property, but these increasingly significant plays by institutional investors attest the growing significance of the whole logistics sector. Read the full article (4 mins).
Better Access to Shopping Centre Data For Retailers
Retailers in NSW will have access to information on sales reporting and occupancy costs from shopping centre landlords, improving transparency and accountability as of January 1, 2019. The Shopping Centre Council of Australia (SCCA) has agreed to the new code of practice. A six-month transitional period to July 1, 2019 will allow shopping centres to sign up for and implement the changes. Ensuring that all relevant parties have access to this data means that landlords, retailers and third parties can make tenancy, marketing and procurement decisions with a better understanding of what is selling and what isn’t in a specific environment. Read the full article (4 mins).
Another Facelift for an Iconic Sydney Waterfront
Weeks after the major redevelopment of the Sydney Fish Markets was unveiled, Circular Quay has been put on the agenda, with US-owned architecture firm Woods Bagot to do the design. Over the next five to ten years the frontage of Circular Quay is set to change significantly, with Woods Bagot redeveloping the existing Gateway building by upgrading the tower podium to create a new civic address at the Quay. The proposed upgrade will revitalise the existing retail centre and create a new food destination precinct. Read the full article (5 mins).
Amazon Pay, Our Pay and After Pay… Oh My?
I’ve spoken before about payment options in store and how they can help keep Brick and Mortar competitive. Amazon Pay is now reportedly approaching selected in-store retailers to trial offering their services in a Brick and Mortar setting. An interesting decision as the service is obviously profitable for them, but it also creates an added convenience to online shopping – their primary business. Read the full article (3 mins).
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