Large Format Retail Australia

May 12, 2023

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Large Format Retail (LFR) in Australia has proven to be resilient during the COVID-19 pandemic, offering a degree of protection to pre-existing retailers that is unmatched in many other global markets. The strict planning regulations and high costs of land in major metropolitan areas have served as high barriers to entry, providing continued support to both occupiers and LFR assets. Australia is expected to secure the 2nd highest population growth globally over the coming decade. With a limited supply pipeline for LFR, the future of the sector is backed by positive fundamentals. Major LFR occupiers have demonstrated relatively strong performance over the past five years, providing validation for our rental growth forecast over the next decade. This report explores the favourable macroeconomic outlook and sector-specific factors positioning both occupiers and LFR asset owners for continued growth.