The Colliers International Australian Retail Market Indicators Report – Winter 2009, revealed retail centres on the Gold Coast are proving hot property for international retail brands.
Helen Swanson, Queensland Commercial Research Manager at Colliers International, said despite economic uncertainty, Queensland's leasing market continues to attract quality tenants and above average market rents.
"At Harbour Town Shopping Centre Marco Polo Factory Outlet, Universal Store, Speedo, Lacoste and French Connection have all committed to retail space in March this year," she said.
Similarly, Emerald Lakes located at Carrara on the Gold Coast managed to secure Azzure Hair Salon, Select World Travel and Superior Retail Solutions all for a gross face rental of $650/m2 in November 2008.
"Restaurants also continue to pay premium rates to locate in the popular Gold Coast suburb of Broadbeach," said Ms Swanson.
Saffron Indian Restaurant committed to 340m2 of space located at 2769 Gold Coast Highway November last year for a net face rental of $618/m2 and Uno Restaurant 126m2 of space at 90 Surf Parade for a gross face rental of $873/m2 in March this year.
Also on the Gold Coast at Robina Town Centre, Stratus signed a lease for 95m2 of retail space for a gross face rental of $474/m2.
"From the Gold Coast to the Sunshine Coast, popular lady's sportswear designer Lorna Jane has committed to 98m2 of retail space along Mooloolaba Esplanade, Mooloolaba for a gross face rental of $1,460/m2 last December," said Ms Swanson.
Also on the Sunshine Coast located along the trendy retail strip of Hasting Street, Noosa Heads, an undisclosed tenant has signed a lease for 61m2 of retail space for a gross face rental of $1,666/m2.
Ms Swanson said the average rent on Brisbane's Queen Street Mall was between $3,000-4,000/m2.
"A larger size tenancy may be able to achieve a gross face rental of anywhere between $1,000/m2 and $2,000/m2 depending upon location on the mall," she said.
"Premium CBD locations such as Queens Plaza or retail tenancy's facing the Queen Street Mall also attract a premium which can attract a gross face rental rate of anywhere up to $7,000/m2 depending upon size of tenancy."
Away from the glitz and glamour of the coast and Brisbane CBD, new retail projects are continuing to emerge in Brisbane's outer suburbs, she added.
"Deteriorating economic conditions and in particular rising unemployment should see a fall in consumer spending over the next six months which is likely to result in rising incentives and falling rental rates for retail product located in secondary based locations," she said.
Dan Cuda, Director of Retail at Colliers International, said despite this Queensland's retail market is expected over the long term to be supported by significant population growth, a robust economy and significant investment of State based infrastructure projects.
"Much of South East Queensland's projected population growth is likely to occur in the growth corridors of the Gold Coast, Sunshine Coast and Outer South Western Suburbs of Brisbane which should see strong demand for retail space in these areas," he said.
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