Marius Wentzel, CIMA®’s Post

Shopping centres are thriving in 2024! Despite cost-of-living pressures and the rise of online shopping, Australia’s major shopping centres are making a strong comeback. Retail rents are rising, mall valuations are stabilising, and returns are outpacing even the logistics sector. Key drivers of this resurgence?  - Limited New Supply: With population growth outpacing retail space availability, demand for prime locations pushes rents upward.  - Evolving Tenant Mix: Shopping centres are embracing "high-touch, high-engagement" experiences, with fitness, wellness, and entertainment brands driving foot traffic.  - Strategic Leasing: Recent lease spreads are positive, with rents increasing 2.7%- 3.5% on average and annual fixed escalations of 4.9%- 5.5%. The result? Investor confidence is soaring, with large shopping centres back "in favour" and transactional volumes hitting their highest levels since 2018. As retail real estate adapts to new consumer expectations, these trends highlight the resilience and innovation shaping the industry. At LeaseInfo, we’re passionate about supporting retailers with cutting-edge tools and insights to navigate this evolving landscape. Find out more https://leaseinfo.digital/ The Australian Financial Review Simon Fonteyn Robert Harley

Transactional data suggests #shoppingcentre values typically fell 30-50% between 2005-2015 and a further 60-90% between 2015-2023. Obviously with some outliers (esp. London suburbs with a #residential underwrite). For a few schemes, there may not be a way back, but does such dramatic rebasing now make an attractive #investment case for good, fit-for-purpose assets? #retail #highstreet #retailproperty #retailrealestate #kfretail Charlie Barke Will Lund https://lnkd.in/e6J-MznT

When I finished writing "Remarkable Retail: How to Win & Keep Customers in the Age of Digital Disruption" back in 2020 I--more than a bit cheekily--suggested that the problem with a lot of second and third tier malls was that they were under-demolished. Moreover I predicted that many would be bull-dozed or massively repurposed. The spending impacts from Covid and the distorted retail spending from government stimulus delayed this a bit, but now it's gathering quite a lot of momentum. In the New Year we're very likely to see many more mall anchors close, pushing this trend even further.

Great to see UK shopping centres getting thumbs up at the Financial Times. Some good commentary from Andrew Whiffin and probably the most important is the perception that values are bottoming out with new entrants appearing in the market. Our team at Lunson Mitchenall have marketed five shopping centres in the past few months and what is clear from this process that this positive news around occupational demand and the sharp correction of values is attracting a brand new wave of money to the sector. Looking forward, I'm keeping a sharp eye on what statements will be made in the coming weeks by the new government around business rates reform. A reform of this tax on occupation will have a positive impact on retailer’s outgoings, rental affordability and thus investment values. 

Interesting read from the lens of all things property. Property finance, marketing, management, asset management, market research & analysis; and more. Thanks for sharing Nova Property Group

In Q3 2024, the Polish retail market expanded by another 116,000 sqm. With average retail vacancy rates in the largest Polish cities falling and tenants posting rising turnover levels, predictions of the imminent decline of shopping centres in Poland have proven premature, says BNP Paribas Real Estate Poland in its latest report ► https://lnkd.in/dyzavdbD Fabrice Paumelle, Klaudia Okoń #commercialrealestate #propertyinvestment #realestateinvesting #realestatetrends

Neighbourhood shopping centres are emerging as the next big thing on the commercial property front, as Trilogy Funds' Laurence Parisi explains.

How did the shopping centres perform in H1 of 2024? Tenant sales were up 4.2%, and footfall was up 2.9% year-on-year. This is positive news for both tenants and investors, showing that people are going shopping in higher volumes. Despite a challenging investment market, over €300m of disposal transactions were completed. Shopping centre vacancies were at 3.5% in Continental Europe, lower than in the UK and the US. Shopping centre net rental income was up by 5.3% on a like-for-like basis, providing higher revenues for investors. Particularly popular assets are grocery-anchored shopping centres located in large cities. Looking specifically at sectors, we saw a significant increase in the performance of well-being sectors. Fitness rose by 29% and Health & Beauty by 12.2%. As most of Europe is now on holidays, hopefully, these trends continue as we look forward to a successful second half of 2024 for the retail industry! https://lnkd.in/d_nau949 Anna James Augusto Arrochella Lobo Sarah Hoffmann Tjard Martinus Heather Hall Jessica Jaoui 🎗️ Quentin Bugli Lennard Magis Agnieszka Kolat Tim Vallance

Shopping centers across the U.S. faced several years of challenges due to the COVID-19 pandemic and subsequent recovery period. However, shopping centers (including strip, power and neighborhood centers) benefited from government support programs during the pandemic and have experienced rapid recovery since, growing on average between 2 and 3 percent over the last five years, reported the Commercial Property Executive. "There are several tailwinds working in shopping center REITs’ favor, even as they grapple with macroeconomic factors such as inflation and lower consumer spending." https://lnkd.in/gEhq6Y62 #unitedstates #retail #REITs

Stay ahead in the retail game with the newly released 2024 Urbis Shopping Centre Benchmarks. Dive into comprehensive data and expert analysis today! #UrbisShoppingCentreBenchmarks #UrbisInsights #RetailInsights