Retail turnover growth drops in August: Jones Lang LaSalle
Shopping centre managers now have a less positive on future trading prospects than six months ago according to the JLL Retail Survey.
In February, 63% of respondents to JLL's Retail Survey said they expected some turnover growth in the year ahead, however in August this had dropped to 51%.
JLL’s head of property and Asset management Australia, Richard Fennell, said one of the concerns being highlighted by centre managers as impacting their turnover performance going forward related to competition from new or upgraded centres.
“On the positive side, the potential impact of online retailing has consistently reduced as a factor in future trading prospects," he said.
"While there is some pressure on sectors of the market from overseas online retailers, it is not seen as a major concern for smaller convenience based centres.
“The main sources of online sales in the grocery sector are the bricks and mortar supermarkets, with sales still reflected through their bricks and mortar stores."
Completions by Centre Type, 2011-17
JLL strategic consulting director David Snoswell said the vacancy rate for sub-regionals declined from 2.8% in December 2014 to 2.2% in June 2015 – the lowest reading since September 2013.
"The average vacancy rate across neighbourhood centres was 3.9% - the first time the reading has dipped below 4%,” he said.
“While tenant enquiry levels were weaker in the latest survey compared to the February result, the actual result is only the fourth positive reading from the 13 surveys that have been conducted since 2011 and is a marked improvement compared to the negative sentiment throughout 2013.
"Tenant enquiry remained positive for the third survey in a row with a net balance of 5%; a relatively good result given that eight of the first nine surveys had negative readings.”
Turnover Outlook – Next 12 Months
