Saturday 6 October 2012

How Retail Rents Compare

Last weekend The Age reported a shift in retail content in shopping centres as traditional retailers closed their doors unable to contend with rent levels particularly in prime areas.

We thought it was time to see how our stall rents at QVM compare with the rest of the retail industry. We have used A$ per square metre per annum which is a measure typically used in real estate.
Bourke St. Mall - $9700
Collins St. (top end) - $3900
Chadstone (luxury precinct) - $3900
Knox & Doncaster - $1550
Chapel St. South Yarra - $1300-1500
Toorak Rd. South Yarra - $500-900
High St. Armadale - $450-700

Westfield Specialty Retailers - $1300
Premier Investments (Just Jeans etc.) - $1100
Myer - $210
David Jones - $190
JB Hi-Fi - $475

QUEEN VICTORIA MARKET – General Merchandise Stalls
K shed (long side) - $600
K shed (short side) - $965

 Obviously there are problems comparing rents from different areas and different types of retailers. In the case of QVM we have used the rent for a standard double stall (pillar to pillar) and assumed trading of 48 weeks per year. Traditional retailers have additional outgoing expenses for things like water, air-conditioning and electricity but we don’t have those services. Further complicating the comparison is the fact that we have to set up and pack up each day. However, ignoring all the complications, our rents sit roughly in the same area as Toorak Rd. South Yarra and High St. Armadale rents and we pay significantly more than the larger retailers.