From healthy foot traffic to nearby amenities, does your next retail investment property have the right mix of ingredients? Read on for expert advice about what makes a great retail-leasing location.
With Colliers projecting 2.8 million square metres of retail construction to be completed over the next four years, it's safe to say that retail development in Australia is on the uptick. But with so many options, how do you choose the right retail investment? To help, here's a look at some of the factors that make for a leasing hotspot.
Availability of public transport
Does the area have sufficient foot traffic? According to Robert Kelly, managing director of Gorman Kelly in Melbourne, “The success of retail is highly dependent on the availability of public transport and parking.” In particular, he points to the success of Glenferrie Road in Hawthorn, which benefits substantially from heavy foot traffic from the nearby Glenferrie Railway Station and Route 16 tram that runs through the neighborhood.
Ample business parking
When it comes to retail rents, parking can also be a key factor. For example, based on research by Gorman Kelly, properties with rear parking on the eastern side of Glenferrie Road are commanding rents between $900 and $1200 per square metre versus properties on the western side, which earn roughly 20 per cent less due to lack of rear parking. And for areas north of Liddiard Street, where parking is severely limited, rents drop drastically to an average of $350 per square metre.
Nearby retailers and businesses
Also contributing to the success of retail are the types of surrounding businesses. In particular, the Hawthorn area is the beneficiary of a number of banks, grocery stores and food outlets – not to mention Swinburne University – which attracts a constant flow of pedestrians and university students.
“While many retail shops have hit hard times, Glenferrie Road continues to thrive thanks to the large influx of students on a day-to-day basis.”
When looking for the best retail properties, it's important to pay attention to traffic generators in the neighborhood such as public transport, parking and nearby businesses and amenities. As the retail success of Glenferrie Road in Hawthorn shows, it's the right mix of factors that makes a retail-leasing hotspot. Search online to find your next retail property today.