Adelaide, 23 June 2015 – A growing number of large format retailers have been looking to expand into South Australia in the past 18 months, according to a new CBRE review.
The review also highlights that established retailers have been seeking to grow their state presence, as a result of strong retail sales being recorded in the Adelaide market.
Demonstrating this trend, Barbeques Galore has recently leased premises in Noarlunga to expand its South Australian operations and take advantage of favorable retail conditions, fueled by the buoyant housing market.
The new showroom, which opened May 2015, joins Barbeques Galore’s three previously established sites at Gepps Cross, Marion and Mile End.
The 906sqm showroom, located at 160 – 168 Beach Road, features ample onsite parking, high roadside exposure, close proximity to other established retailers including ‘The Good Guys’, and flexible fit-out options.
Dallas Sears of CBRE negotiated the five-year lease on behalf of lessor Thomco (No 2073) Pty Ltd. The showroom’s asking rent was $240/sqm gross.
Ms Sears said with large format retail vacancies in Adelaide currently as low as 0.4%, the opportunity the Noarlunga site offered was unbeatable for Barbeques Galore.
“Noarlunga is currently a real hub of activity for large format retail, with newcomers such as Petbarn and Barbeques Galore entering the market and joining long standing retailers such as Harvey Norman, Supercheap Auto, Spotlight and Anaconda.”
Following this lease agreement there is only one small vacancy, which was recently completed, in the Noarlunga large format retail strip. There is also no vacancy in the Noarlunga Homemaker Centre which is the premier large format retail centre in this area and only limited availability in the second tier large format retail centres in the Noarlunga area.
“Over the coming months, the increase in new housing developments in the southern suburbs, particularly the Noarlunga and Seaford areas, should further fuel high demand for retail spaces,” Ms Sears said.
In response to increased retail demand, several new developments are in the planning stages in the southern suburbs, including new tenancies for both Masters and Bunnings.
“On the back of falling fuel prices and low interest rates, retail sales volume growth is expected to remain positive for 2015.”
Other large format retailers such as Ashley Furniture and Focus on Furniture have also taken advantage of positive retail growth in the Adelaide market and forecasts for further optimistic retail sales should prompt more brands to target South Australia for expansions.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 52,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 370 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
