The Australian Retail Market – Snapshot
In 2018 there were 1,630 shopping centres in Australia that exceeded 1,000 square metres of gross lettable area. Within this number was 78 Regional shopping centres including at least one department store. 291 sub-regional centres, 1,120 neighbourhood shopping centres that has at least one major supermarket and 96 CBD centres.
In 2022, total retail sales made through Australian shopping centres was estimated to be $183 billion, which was equivalent to 8.3 per cent of Australia’s gross domestic product.
The ‘Retail Trade’ sector accounts for 10 per cent of the Australian workforce and approximately two thirds of which are employed in shopping centres. ‘Retail Trade’ is the single highest private sector contributor to employment in Australia.
According to the publication SCN (Shopping Centre News), the five largest shopping centres in 2023 by moving annual turnover were:
– Chadstone (VIC)
– Westfield Chermside (QLD)
– Highpoint (VIC)
– Westfield Fountain Gate (VIC)
– Westfield Bondi Junction (NSW)
The five largest shopping centre owners, by total GLA, as at June 2022 are:
– Scentre Group
– Vicinity Centres
– QIC Real Estate
– The GPT Group
– ISPT
Market Rental Valuations
In addition to providing retail shopping centre valuation, Lewis Valuations + Advisory undertaken market rental valuations and determinations.
For lessees who are approaching a market review prior to exercising an option period, a market valuation prior to this can save you potentially tens of thousands and in some cases hundreds of thousands over the lease term. Preparing well in advance to the notification of option date is critical to ensure both the landlord and the lessee can review market evidence from a valuer.
Specific Legislation by state
Victoria – Retail Leases Act 2003
Tasmania – Fair Trading (Code of Practice for Retail Tenancies) Regulations 1998
New South Wales – Retail Leases Act 1994
Queensland – Retail Shop Leases Act 1994
South Australia – Retail and Commercial Leases Act 1995
Western Australia – Commercial Tenancy (Retail Shops) Agreement Act 1985
Australian Capital Territory – Leases (Commercial and Retail) Act 2001
Northern Territory – Business Tenancies (Fair Dealings) Act 2003
Data Sources: SCCA Research, Australian Bureau of Statistics, Shopping Centre News.
