Priorities to Spark CBD Revival
The Property Council has identified the top priorities for a new plan to guide the revival of the Perth CBD, including the retail sector.
The retail sector in the Perth CBD is going through a transition as a result of redevelopments, the imminent arrival of new retailers and the high vacancy rate for commercial offices, which in combination is contributing to the higher than usual number of vacant retail premises.
Good examples of this transition are the expected opening of international retailers H & M and Superdry in the CBD next few months. Upcoming redevelopments also cause temporary vacancies like the work about to start around Forrest Chase, often retailers move out early before construction.
Higher CBD office vacancies mean fewer CBD workers, which are the mainstay of the CBD retail sector and CBD eateries.
The tougher economic conditions in the WA are undoubtable having an impact on retailers, however the fact that there are a number of new retailers about to open in the CBD is evidence that the market is adapting to the new conditions. Once we get through this transition period and the CBD office workforce stabilises (which is expected in the coming year) the Perth CBD retail sector will also be better placed to commence a revival.
However a genuine CBD revival will not happen without smart strategic planning. Here are the Property Council’s priorities to kick-start the Perth CBD revival.
CBD light rail
With major projects such as Perth Stadium, Perth City Link and Elizabeth Quay all well underway, connectivity is a major issue that Perth must address. The CAT bus system is great but it’s not direct and it needs a central transport spine like a CBD light rail line, possibly down St George’s Terrace.
Re-thinking old buildings
Other cities have addressed the emerging problem of rapidly deteriorating older commercial buildings by incentivising the upgrading or re-adaption of aging buildings. One solution taken up in Sydney, Melbourne and Adelaide is the creation of Building Upgrade Schemes. This requires State legislation to allow local authorities like the City of Perth to bring building owners, tenants and financiers together and agree to terms for the upgrade of an old building. The local authority would then facilitate the upgrade through its planning processes.
New precincts in the CBD
One of the benefits of spreading the major projects around the CBD is the potential to create new precincts in the CBD. Much like Cathedral Square which has become multi-use precinct including legal, civil and hospitality uses, other precincts can be created to be the attractors of new industries in the CBD. This could be backed up with a marketing campaign around business attraction in the CBD.
Retail competition
Competition is heating up as suburban activity centres are going through multi-million dollar redevelopments, this will only increase the attraction of staying in the suburbs to shop, dine and do business. Facing up to this competition won’t be easy; however the retail sector in the Perth CBD could consider a similar overhaul if we are to compete with these emerging markets.
Plans to develop a cinema in Raine Square as well as other entertainment offerings, and the imminent upgrade of Forrest Chase are good examples of the CBD responding to the suburban challenge.
Security
Anti-Social behaviour in the CBD is a genuine concern for property owners and tenants. A new strategic plan for the CBD must tackle the security issue. This includes greater surveillance and patrolling.
Parking Costs
High parking costs in the CBD are also an issue for the CBD retail sector. A major factor contributing to Perth’s high parking rates is the State Government’s CBD parking levy which is in excess of $1000 per year, per bay. A simple and effective way to lower parking costs and attract more shoppers is to wind back some of the sharp increases in the levy in recent years.