CBRE states in its third quarter Retail MarketView that plans to create in excess of one million square meters of shopping center space over the next three-yearThe creation will include major extensions of Chadstone Shopping Center in Melbourne and Pacific Fair on the Gold Coast, as well as a 29800m² expansion of Westfield North Lakes in Brisbane and a 35000m² expansion of Macquarie Center in Sydney.
The head of research at CBRE, Stephen McNabb, said the effect of foreign retailers, some of whom are pushing out domestic retailers fr om top locations, should not be underestimated.
He said that foreign retailers often require larger than average formats for their stores and they demanding prime positions within the shopping centers. This has prompted landlords to seek ways in which they can redevelop and expand their buildings to accommodate this segment of the market.
The Australian retail market is experiencing growth as it is being viewed as a natural add-on to the shift to Asia, because European and US markets are viewed as mature.
This can be clearly seen in the transformation of the former Macquarie Center in Sydney, which opened for business on October 16 and is believed to be the first suburban center within the country to house all the large international fashion brands, such as GAP, Forever 21, Uniglo, Zara and H&M.
Other success stories include H&M’s report of achieving $21m in turnover during its first eight weeks of trading after the opening of its first Melbourne store.
The main effect of this demand can be seen at super-prime level, wh ere CBRE states an increase of 3.6% in rents this year and Sydney, in particular, experiencing a massive 12.5%.