LeaseWise Market Update August 2021

Leasewise AUGUST 21 Market Update

The New Normal - Retailing during a pandemic

Retailers are tired and in despair, Shopping Centres have been decimated with strict Government mandates limiting all non-essential retail. Shopping centres appear to be abandoned shells and many retailers are cashflow depleted whilst their rental debts accumulate. In a desperate attempt to maintain asset valuations, landlords are showing little flexibility towards tenants and demanding rent be paid including the recouping of back rents – despite the fact that this is not the trading environment that retailers signed up for.

The recurring lockdowns have seen any positive momentum in the retail market lost. The latest Delta outbreaks along the Eastern Seaboard may be the straw that breaks the camel’s back. Industry experts forecast that a retail recovery will take several years…

Data Released by Australia Bureau of Statistics by Industry for the month of June 2021

Data Released by Australia Bureau of Statistics by State & Territory for the month of June 2021

Amongst the uncertainty, savvy retailers are shifting away from bricks and mortar retail and exploring other low risk, low capital options that are resilient to lockdown environments such as dark kitchens and e-commerce digital platforms which consumers have become accustomed to.

Earlier this year many retailers were very optimistic about the retail recovery however, the Delta outbreak slammed the brakes on the positive sentiment. Nevertheless, Leasewise still managed to negotiate and secure 42 new sites as opportunities presented themselves. Many renewals were also undertaken which saw historically inflated rents corrected.

Understandably, over the last 6 months, Leasewise spent a substantial amount of time working and finalising Covid abatements and other landlord/tenant disputes. The retail code and state regulations have provided a framework for negotiations to occur, however, as with all crises we see both the best and worst in behaviours.

We look forward with interest to the Christmas period and trust that landlords and tenants can work together to address the challenges that confront them.

Leasewise Summary of completed Projects

JAN 2021 TO JULY2021

STORE OPENINGS 2021

Congratulations and every success to all store openings in 2021.

Cobb & Co Carvery

Opened February 2021 Mt Druitt NSW

Coming Soon!! Westpoint Blacktown NSW

Catalog

Opened March 2021 Rockhampton QLD

Opened June 2021 Toowoomba QLD

Coming Soon!! Karingal Hub VIC / Pacific Epping VIC / Helensvale QLD

Cowch

Opened June 2021 Broadbeach QLD

Opened August 2021- Garden City QLD

Cucina

Opened May 2021 -Plenty Valley VIC

Elite Supps

Opened March 2021 - Bathurst NSW & Robina NSW

Coming Soon!! Liverpool NSW & Eastland VIC

JNBY

Opened July 2021 Doncaster VIC

Coming Soon!! Emporium VIC

Kitten D’Amour

Opened May 2021 Melbourne Central VIC

Marketplace

Opened June 2021 Essendon

Coming Soon!! All Asia Cranbourne VIC /Marketplace Fresh Cranbourne VIC / Knox VIC / Templestowe VIC / Woden ACT

Matchbox

Opened May 2021 Uni Hill VIC & DFO Essendon VIC

Coming Soon!! Karingal VIC

Salt & Pepper

Opened March 2021 DFO Moorabin VIC

Opened April 2021 Northland VIC

Coming Soon!! Fountain Gate VIC / Broadmeadows VIC/ Chirnside Park VIC / DFO Essendon VIC

Velvet Bean

Opened June 2021 Southland VIC

Walkers Doughnuts

Opened June 2021 Bendigo VIC

Coming Soon!! Doncaster VIC / Karingal VIC / Spencer Street VIC

FURTHER STORES COMING SOON

Sugar Buns - Karingal VIC

Breadtop - Sylvia Park NZ

Red Duck - Swanston St VIC

KFC - Parkmore VIC

Kot Nails - Box Hill VIC

La Belle Miette - Chadstone VIC

Orange Hair Salon - Box Hill VIC

Billy’s Larder - Lilydale Market Place VIC

Sushia - Garden City QLD

Lunattone - Doncaster VIC

Stenders - Chadstone VIC

Zikrayat Lebanese Restaurant - New Location Glenferrie Road VIC

A warm welcome aboard to General Public, Funtopia and Sugar Buns our new working partners looking at spreading some fun after all the lockdowns

Our commitment to our retail partners is to continue achieving exceptional outcomes for their businesses as confidence returns to the market. Retailers looking for tailored leasing assistance, feel free to reach out to one of our expert & passionate team member who can provide specialised retail leasing services across a broad range of retail categories.

We thank you for your ongoing support and we look forward to
connecting with you again in our end of year Market Update.

The Leasewise Team