LEASEWISE NEWSLETTER JULY 2022

JULY 2022 NEWSLETTER

The first 6 months of 2022 have come and gone providing an interesting insight as to how both consumers and the retail market continue to respond to Covid-19, as well as the increasing cost of living due to inflation.

The retail industry has seen a strong demand in growth for ‘fresh food’ followed by health services, local entertainment and travel. This is mainly due to the strong consumer demand despite the increase in interest rates and increased cost of living as any of these products/services remain essential for consumers and significant pent up demand after two years of closed borders and limited outings.

NEW SITES BY CATEGORY JAN-JUN 2022

As anticipated, with the Government support and legislation protecting retailers ending, the majority of Landlord’s have now commenced finalising covid support and pursuing covid related debt.

Adding to the complexity of these discussions are the deferred arrears compounding with increased costs to business due to the labour shortage, increased cost of utilities, transport, stock shortages as well as increases to cost of goods. Whilst some Landlords have engaged in some level of commercial discussions, others have taken a more fixed stance. As a result, there has seen a substantial uptick in both rental abatement requests and disputes.

A major focal point amongst the industry has been rent reviews/ increases. There is a strong pushback from retail outside of VIC on committing to CPI + 2.5% increases due to inflationary pressures (5.1% in March quarter). There is also much debate and pushback over the standard fixed 5% increases as growth in consumer sales continues to lag well behind and potentially may regress in some categories as interest rates continue to rise.

Very modest retail growth is false as it’s inflation based, not real growth. If retail sales are reported at 1% to 2% growth and inflation at 5% then its already -4%.

ABATEMENT REQUESTS

Typically, the Australian economy has remained resilient and bullish however the next 6-12 months will provide further insight as to how consumers respond to further interest rate rises and inflationary pressures and the impact it will have on overall consumption.

Leasewise, as it always has, will support retailers with all leasing related matters particularly as conversations become more difficult and disputes arise with the changing economy.

Leasewise Completed Projects

JANUARY 2022 TO JUNE 2022

Store Openings in 2022

Breadtop

Wide range of bread cakes buns and pastries

Opened!! Sylvia Park NZ

Coming Soon!! Preston VIC

Catalog

Fashion destination

Opened!! Pacific Epping VIC

Coming Soon!! Corio, VIC

Elite Supps

Nutritional Supplements

Opened!! Westpoint Blacktown NSW

Ellenbrooke WA

Coming Soon!! Maroubra NSW

Hyperdome QLD

Penrith NSW

Southland VIC

The Glen

Foodao

Chinese Street Food

Opened!! The Glen Vic

JNBY

Women’s Fashion

Opened!! Emporium VIC

KFC

fast food

Opened!!

Parkmore VIC

Marketplace

Fresh produce and groceries

Opened!! Templestowe VIC Woden ACT

Coming Soon!! Knox VIC Mernda VIC

Miss Pickle

Mediterranean Food

Opened!! Point Cook VIC

Salt & Pepper

Kitchen homewares

Opened!! Tea Tree Plaza SA

DFO Essendon VIC

Chirnside Park VIC

Stenders

Bath & Body Care

Opened!! Chadstone VIC

Walkers Doughnuts

Tasty Doughnuts

Opened!! Spencer Street VIC

Plenty Valley VIC

Coming Soon!! Epsom Village VIC

Traralgon VIC

Cranbourne VIC

FURTHER STORES COMING SOON

Sandwich Chefs - Fairfield Central QLD

Harpley Town Fruit & Veg VIC

Farm Fresh Chicken VIC

La Belle Miette - Canberra Centre ACT

MR Springgins IP - Tea Tree Plaza SA

General Public - Corio VIC

Sugar Buns - Knox VIC

Sushia Goulburn NSW

Matchbox Knox VIC

Find out more about our services

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

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