Sunday 1 September 2013

Retail Rents Go Down

There appears to be clear evidence that retail rents are on their way down, certainly for new tenancies.
The Age reported this week that major shopping centre landlord, Westfield, was offering new tenancies at up to 10% discounts. New tenancies involve around 7.7% of total shops and average rents were around 6% lower than a year ago.

Existing leases continued to show rent increases in line with CPI plus about 2% according to Westfield. A spokesperson said that pressures in some sectors were leading landlords to remix their centres with more emphasis on food, entertainment, technology and the big overseas fashion brands.

02/09/2013 14:27:49 Rents "Maybe it is time for the market to be collecting monthly sales data from all traders to better understand the position the market traders are in, and to better make more informed decisions rather than generalizing about the health of the market traders position. I thought as the market had introduced licenses, people who sign up for new stalls and businesses should have received better professional advise from a solicitor advising them of at least what the turnover is of the market traders, to gauge better whether the rentals asked of the market are justified."