Global commercial property consultant CBRE is reporting that 2020 saw the retail property sector in Australia recalibrate as lockdowns, trading restrictions and border closures impacted trading conditions and shifted consumer demand.
According to Kate Bailey Head of Logistics and Retail Research Australia, strong retail trade growth has bolstered the retail sector. Record growth in groceries and household goods sales drove investor demand for neighborhood centers and large format retail. Spend is expected to remain elevated for the first half of 2021, offsetting the impact of lost sales from international tourists due to border closures.
Softer yields when compared to other commercial property sectors along with the opportunity to reposition retail assets to maximize rental growth presents good value to investors and may help support a recovery in retail transactions in 2021.
"Changing patterns of consumer demand will drive opportunities for investors, landlords and occupiers alike", says Bailey.