News & Media
SYDNEY RETAIL MARKET by Gregory May, Director, May Estates P/L
It would be an understatement to say that the retail market has been challenging of late. The Lowy Family has moved away from it, Big Box Retailers such as David Jones and Myer are speaking of downsizing their footprints or existing sites which are deemed to be unviable, and we see an increase of vacancies weekly happening on our High Streets.
Needless to say, online retailing has created great challenges for this market sector, and will continue to have an impact.
There has been much talk or re-purposing retail space for entertainment and hospitality uses.
Nevertheless, retail investment remains a very viable option, showing significantly better returns than other forms of investment such as residential or stocks.
Well placed retail property, which is well maintained and well leased is still highly sought after. However, there needs to be a renewed focus on understanding tenant’s needs and business margins in order to establish what are really economic rents. After all vacancy is an investor’s worst enemy. So setting realistic rents, which will enable tenants to make a profit & pay rent on time, must be a priority for the astute investor. This is where sound property advice comes into play.