Foreign retailers set course for regional centres

Foreign retailers set course for regional centresThe continued influx of foreign retailers will drive the expansion of regional shopping centre space, reports CBRE, with an estimated 1 million sqm being completed over the next three years.While foreign retailers have traditionally sought prime CBD shopping centre space, CBRE’s latest Retail MarketView report said there is a ‘space race’ for the owners of regional shopping centres across Australia, most notably in Sydney and Melbourne.Stephen McNabb, CBRE’s head of research, Australia, said the focus was broadening for overseas retailers, a development that is helping to underpin significant expansion plans for regional shopping centres such as Macquarie Centre in Sydney (35,000 sqm), Westfield North Lakes in Brisbane (29,800 sqm), Pacific Fair on the Gold Coast (49,000 sqm) and Chadstone Shopping Centre in Melbourne (19,600 sqm).”Foreign retailers often have larger-than-average store formats and they are demanding prime locations within shopping centres,” McNabb said.”To that end we’ve seen landlords increasingly look at how they can expand and redevelop their centres to accommodate this market segment. It’s created an extremely competitive environment in which discount department stores are needing to refresh and reinvent themselves to combat offshore fast fashion retailers who are taking an increased market share.”McNabb said there is an expectation that all of Australia’s major shopping centres will eventually feature foreign retailers where they can be accommodated, either through tenant repositioning or expansion.The $440-million expansion of Macquarie Centre, which was officially unveiled last week, features high-profile international retailers, including fashion retailer H&M. Macquarie Centre will increase in size to 138,0 sqm, which will make it the largest shopping centre in NSW.”Macquarie Centre is the first suburban centre in the country to have virtually all of the big international fast fashion brands, including H&M, Zara, UNIQLO, Forever 21 and Gap,” said Alistair Palmer, CBRE’s national director of retail services.