Despite Victoria’s retail market taking a battering in recent months due to prolonged lockdowns, one sector has in fact seen an upturn in activity.
Following on from several significant deals and increasing tenant enquiries, Melbourne’s large format retail sector has performed well during recent months.
With Victorians spending more time at home, the demand for goods such as home hardware, sporting equipment and electrical products has increased, much to the benefit of certain household retail stores.
CBRE Associate Director, Large Format Retail, Ryan Arrowsmith, said that demand for top quality large format retail complexes has remained high, with occupancy levels averaging 90%.
“Victoria’s large format sector has been performing very differently to other retail asset classes,” he said.
Mr Arrowsmith added that premises that can provide limited face to face services have performed well as shoppers seek COVID-safe retail environments wherever possible.
We’re seeing particularly strong demand for sites that can be accessed externally, allowing customers to park outside and have minimal contact.Ryan Arrowsmith – CBRE Assiciate Director of Large Format Reatil
“Sales continue to be heavily weighted to retailers who have the capability to offer ‘click and collect’ – again, allowing customers to have as little contact as possible,” said Mr Arrowsmith.
Leading tool retailer, Sydney Tools, and car accessory giants, Repco, have both secured new sites in Caroline Springs whilst JB Hi-Fi and Chemist Warehouse have both committed to long term leases in the Chadstone Homemaker Centre.