The Golden Times’ Post

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

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

H1 2024 Retail Sector Overview H1 2024 retail investment reached c. €1.2 billion (c. 3.0x vs. H1 2023 and +37% vs. last 5 years average), comprising 20% of Spain's total real estate investment. With 11 closed transactions, 4 of them over €100 million, Shopping Centres led retail investment with c. €840 million (70% of the total), spurred by the solid recovery in sales and footfall (+3.4% and +3.5%, respectively, vs. Q2 2023), followed by High Street (14% of the total), and Supermarkets (12%). #RealEstate #H12024 #RetailSector #MarketOverview #Spain 📌 Read the full report: https://lnkd.in/e694DZWy

📢 A great article from the Urbis team on why retail property is back in vogue. Key points: ✔ Turnover growth outpaces the retail market – Shopping centres are outperforming, with turnover and productivity growing faster than the broader retail market. ✔ Limited new development – Rising construction costs have slowed new projects, reducing competition and supporting strong performance for existing centres. ✔ Renewed investor confidence – With constrained supply and growth potential, investors are seeing retail property as an attractive opportunity. https://lnkd.in/gyqQ5Zdb

The rate for new construction of retail developments plummeted in the past decade following the financial crisis and the rise of e-commerce. However, many retailers today are in expansion mode, with a new generation of tenants such as medspas and restaurants. The mismatch between supply and demand has never been more pronounced: #commercialrealestate #retail #realestate

Is it retail property’s time to shine? Our retail property team thinks so. 👜     If 2023 was the year shopping centres broke from their COVID-era shackles, 2024 was a year of consolidation.    While the 12 months to June 2024 marked one of the most challenging periods for retail trade due to severe cost-of-living pressures, shopping centres out-performed the market.    Head to our website to read more insights from the 2024 Benchmarks and reach out to us at benchmarks@urbis.com.au if you’d like to know more. https://lnkd.in/gNzXB7X3   Ian Shimmin Hamish McKnight David Hoy Rhys Quick Hamish Coleman Jeff Armstrong Scott Riddell Ryan Wallis Elissa Stewart   #Urbis #ShoppingCentreBenchmarks #RetailInsights #DataDrivenDecisions #RetailTrends #AustralianRetail

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

Is it retail property’s time to shine? The Urbis team, with a little help from yours truly and a lot of help from Urbis Shopping Centre Benchmarks, have sought to answer that very question. Urbis Shopping Centre Benchmarks aren’t just a uniquely valuable tool for analysing individual centre performance, they also provide a compelling snapshot of the shopping centre industry as a whole. Ian Shimmin Hamish McKnight David Hoy Rhys Quick Jeff Armstrong Scott Riddell Ryan Wallis Elissa Stewart #retail #property #retailproperty #data

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. 

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