Retail tenant enquiries on the riseJLL’s Retail Centre Managers’ Survey for August 2014 reveals improvement in tenant enquiry levels reported by shopping centre managers, but the impact of the economy on retail trade remains a concern.The national survey across 99 shopping centres managed by JLL (throughout five mainland states and the ACT) shows an improvement in centre managers’ overall sentiment. Fifty-six per cent of centre managers currently expect some turnover growth in the year ahead compared with 51 per cent in February when the survey was last held.Tenant enquiry levels were among the indicators that rose, with the survey recording one of the best results for tenant enquiry over the history of the 11 surveys conducted. Not since December 2012 has the measure for the net balance between stronger enquiry versus weaker enquiry been above the neutral 0 per cent mark, with the survey reporting a result of 2 per cent.JLL noted there were variations in sentiment from state to state, with managers in NSW and Queensland generally more optimistic about the year ahead, assisted by increased tenant enquiry in both states. Managers in WA centres were less positive, which is likely attributed to the downturn in tenant enquiry in that state and the impact of the slowdown in WA mining investment.The survey also found there was stabilisation in rental growth expectations in the six-month period. Only 22 per cent of those surveyed expected rents to fall in the next 12 months, the lowest level of negative responses since the survey began in November 2011.However, the political environment and the economy both re-emerged as concerns for centre managers. Respondents were positive about the economic outlook and its impact on retail trade in the February survey, recording a net balance of 4 per cent, but this has since dropped to a net balance of -12 per cent.The survey found competition from other centres to be the retail centre managers’ biggest concern about future retail performance.
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