Australia will continue to rise on the radar of luxury retail brands in 2016, with an influx of global names making a foray in the nation’s major shopping capitals amid strengthening conditions in the retail sector, according to the CBRE.
CBRE Head of Retail Brokerage Leasing Leif Olson said Australia would continue to emerge one of the most attractive retail markets across the globe, with new international labels looking to gain a footprint on the eastern seaboard, while brands with an existing presence would expand in secondary markets like Adelaide and Perth.
“Retailers have a positive outlook in 2016 and 2017, with growth to be centred on the eastern seaboard as global brands move to expand their presence in Australia, targeting core locations such as Sydney, Melbourne and Brisbane,” Mr Olson said.
The sector is also positioned to benefit from growth in the domestic retail market, Mr Olson said.
“An uptick in consumer confidence, coupled with continued growth in the housing sector, will further buoy the retail sector over the next 12 – 24 months, driving growth across the nation’s shopping hubs and large format centres,” Mr Olson explained.
“One of the biggest trends we expect to see will be the continued expansion of national retailers looking to roll out stores over the next one to two years.”
Mr Olson said retail centres would undergo a significant change in the year ahead, with a swag of new developments underway across the country set to change the flavour of shopping centres in Australia.
“Shopping centres including Karrinyup in Perth and Westfield Doncaster in Melbourne are undergoing major redevelopment, which will be supportive of accommodating new brands – both domestic and offshore – over the coming year.”
“These redevelopments are also supporting a shift in the type of retail offered by shopping centres in Australia, with larger box users such as Uniqlo, H&M and Topshop, which take up approximately 3,000sqm – 4,000sqm, becoming more common.”
While growth in Australia’s retail sector is expected to be focused in Sydney and Melbourne, Brisbane is also expected to benefit from growth over the next 12 months.
Mr Olson said off the back of major refurbishments recently completed, Edward Street in the Brisbane CBD was earmarked for major growth.
“Edward Street will continue to be a pocket of growth for Queensland’s retail sector, with strong demand from luxury brands looking to secure a presence in the sought after hub set to continue in 2016,” Mr Olson explained.
“Queen Street Mall has also experienced a big influx of international names, with labels such as Zara, H&M Home targeting Brisbane’s major shopping hubs.”
Source : http://www.cbre.com.au/