Suburban Retail Vacancy Rates on the Rise?
Retail vacancy rates across both the Melbourne CBD and key suburban retail strips have increased over the past 12 months, requiring many investors to re-visit their existing leasing and management strategies.
Inside Retail Weekly has recently reported that vacancy rates across 10 of Melbourne’s most important retail strips is currently sitting at 9.2%, which is a sharp increase on the 7% identified this time last year.
Coupled with this, CBD retail vacancy rates rose to 2.7% from 2.45% as reported in June 2016.
“With all the media speculation around consumer confidence and discretionary spending, these figures are not unexpected” said Lincoln McConnell-Brown, Head of Asset Management for CRS Property. “Obviously, the fashion industry is being impacted by the effect of on-line retailing as well as the consumer shift towards “experience” channels such as cinema’s, dining and entertainment.”
CRS Property confirms that vacancy rates within its management portfolio are extremely low, with a near 100% occupancy rate across all sectors, bucking recent reported trends and industry expectations. “Our asset management team works seamlessly with our leasing team to continually monitor tenancy performance, ensuring that any potential vacancies are identified early and managed towards a successful outcome for our clients” McConnell-Brown added.
We invite landlords to speak with us about our cutting edge management techniques and how we may be able to positively impact your holdings.
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