What are some of the retail hot spots in Australia? Ragtrader gets a state-by-state lowdown from international real estate services firm Colliers International.
New South Wales - Sydney associate director of retail Glenn Dumbrell.
Sydney central business district
Major redevelopments, including projects at Mid City Centre and Westfield Sydney, have lead to increased interest in the Sydney CBD. This is because retailers have struggled to relocate during closures due to a lack of space. That said, there is always high demand for CBD retail space because income levels in the area are greater than those at a regional level. The Australian Bureau of Statistics' 2006 Census found the average national individual income was $466 per week and household income was $1027. Compare this to the City of Sydney, which recorded $717 for individuals and $1204 for households per week. International visitors also play a significant role in CBD retail trade.
Double Bay
The Cosmopolitan Centre is owned by Stamford Hotels and is fetching some of the highest rents in Australia up to $2200 per square metre. The redevelopment of the former Stamford Plaza Double Bay will comprise five storeys of high-end residential apartments and about 22 shops on the ground floor. The retail component of the development is expected to open by June 2009. Recent leasing deals include Cosmopolitan Shoes and Evelyn Miles (soon to be rebranded as Midas) along with some "soon to be signed" leases by international fashion brands. The public car park with 78 bays dedicated to the public, is located under the Cosmopolitan Centre and is due to open with the centre in June, which will provide better access for shoppers to the area.
Bondi Beach
Since Westfield Bondi Junction reopened in November 2006, sales have [suffered] in local catchment areas such as Bondi Beach, Paddington and Double Bay. On top of the restricted parking at Bondi Beach, it compounded the difficulty that retailers had in keeping shoppers there and the sales were diluted as a natural consequence of the reopening.
New retail developments have sparked greater interest in the area. The Swiss Grande on Campbell Parade is currently under redevelopment by a private developer. It will comprise approximately 8000 square metres of retail space over two levels and luxury residential apartments above. The recently completed redevelopment The Bondi at 152 Campbell Parade comprises 1500 square metres of retail with only two retail spaces left.
Victoria - Victoria director of retail Lachlan MacGillivray.
Melbourne central business district
This is the hottest spot for retail activity with enquiry levels by retailers higher than ever. Melbourne's CBD is underpinned by strong employment levels and its ever-growing residential population. The nearly completed former Village Cinema Centre is gaining particular interest from local independent, national and international brands. It backs onto China Town and is located in a seven-day a week trading location. The mixed-use development is due for completion in late May, and will comprise 5000 square metres of retail space over three levels - basement, ground and first floor, which is already 70 per cent pre-committed. Above this will accommodate 6500 square metres of office space over four levels.
Queensland - Brisbane director of retail Dan Cuda and Gold Coast commercial director Leonie Smith.
Retail hot spots in Queensland are driven by population so there are some major areas with significant potential.
South West Corridor
Growth in the South West Corridor is Brisbane's number one hot spot. The South West Corridor has the largest population growth in Brisbane. There are a number of planned retail developments and redevelopments but starting dates are hazing due to the current economic situation. A number of regional centres that have planned expansions and redevelopment in the corridor include Grand Plaza in Browns Plains, Riverlink in Ipswitch, Indooroopilly Shopping Centre and Mount Ommaney Shopping Centre.
In this South West Corridor, these centres are all over-trading which means they have minimal vacancies, high leasing demand and small businesses are doing well, with a low turnover of retailers.
Gold Coast
The hottest spot on the Gold Coast is Broadbeach. It contains icons including Pacific Fair Shopping Centre and the new Wave mixed-use development continues to dominate the High Street area of Surf Parade.
Nearby, Oasis Shopping Centre has mooted plans for remixing its tenancy mix and the $800 million development The Oracle, has stirred retailers for more prominent retail space in the area.
The area to watch over the next few years is the northern growth corridor, with several shopping destinations planned.
Sunshine Coast
Large shopping centres on the Sunshine Coast have projects and proposals on hold. Centres here are over-trading and these developments are driven by demand, which means we expect them to undertake construction in the short to medium term.
There are a number of centres that have leasing activity including Middle Park, Cooloola, Village Fair in Browns Plains, Murrumba Downs, and the potential for redevelopment at Cannon Hill. Leasing activity will continue in Queensland, following a slowdown of deals signed by specialty shops on projects. The commitment rate is not as strong as 2007, however retail shops are continuing to open, particularly those brands that are in a good financial position.
South Australia - Adelaide director of retail Stephen Payne.
Norwood
The number one hot spot outside the booming Rundle Mall and Adelaide's CBD is The Parade at Norwood. This high-end retail strip has recently signed Sportscraft, FCUK and Seed to its street as major brands compete with each other, driving up rents. It's [one of] the strongest alternative to the city.
Prospect
Prospect Road is another up and coming hot spot, with a number of independent fashion brands recently opening stores. The independent retailers can't compete with national brands in more expensive rental areas of Rundle Mall and CBD and The Parade, so Prospect Road holds great potential.
Western Australia - Perth associate director of retail Peter Millard.
Perth central business district
All of Western Australia's retail hot spots are located in the Perth CBD. This is due to the amount of recent development underway, with four new major office towers currently under construction. The growing CBD apartment market is maturing, which means more executives are residing in the CBD, making it more attractive to retailers, especially high-end players.
Having four major railway lines meet at Perth's CBD provides a focal point for commuters and especially for Sunday trade as regional centres are closed on Sundays in Perth. King Street is Perth's high-end retail hot spot with international brands including Gucci, Louis Vuitton and Watches of Switzerland established on the strip.
There have been recent leases signed for King Street as it has been identified by upmarket fashion retailers, and it equates well to Melbourne's Chapel Street.
The opening of the new ANEX 100 development in Hay Street Mall has seen retailers recently open up shop including Mimco, Witchery, Veronika Maine, Guess and a Brisbane-based jeweller Hardy Brothers. Stage two opens in June 2009 which will include a Woolworths and JB Hi Fi.
The CBus development ONE40william in Murray Street Mall is due to open in the first quarter 2010 and is already 40 per cent pre-committed. There will be 6500 square metres of retail on the ground level and first floor, and 35,000 square metres of office space over 19 levels above.
ONE40william has received a Five Star Green Star Office Design rating and has received a lot of national and international interest. Located over the new Perth railway station, ONE40william connects with Murray Street Mall, William and Wellington Streets.
It will have direct access to the train station below, and will benefit from the foot traffic of commuters as well as the 2500 office workers that will reside above.