The latest quarterly report on retail leasing costs from international property analysts, Savill’s Research, gives an insight into the added fixed costs faced by specialist retailers when compared to major shopping centre tenants, discount department stores and bulky goods stores.
On average specialist retail space is three to four times as expensive as space leased by major stores, discount department stores and bulky goods outlets such as Harvey Norman, according to the Savill’s figures.
For instance, in Melbourne, a major tenant in a regional shopping mall is charged between $230 – 250 per square metre, a discount department store $230 – 250/sq m, a bulky goods store $175 – 280/sq metre, while for a specialist retailer, the asking price will be from $750/sq m – $1500/sq metre. The Savill’s figures are generally ‘net rental’, include in addition to rent other costs such as insurance, maintenance, repairs, utilities, etc. Savill’s also provides figures for sub-regional and suburban shopping centres which are proportionally lower.
Savills didn’t publish figures for shopping strip figures for Sydney of Melbourne (only CBD lease costs, which range too widely to be meaningful), but in Adelaide shopping strip leasing is from $250 – 600/sq metre, in Brisbane $300 – 800/sq m, and in Perth $400 – $1500/ sq m.
Capital city by capital city, the Savill’s ($/sq m) figures are:
ADELAIDE
(Regional Shopping Malls):
Major Tenant: $170 – 350
Discount Dept Store: $75 – 125
Specialty: $1010 – 1775
Bulky Goods: $125 – 220
Strip (non CBD): $250 – 600
BRISBANE
Major Tenant: $300 – 450
DDS: $200 – 250
Specialty: $900 – 1800
Bulky Goods: $150 – 250
Strip (non CBD): $300 – 800
PERTH
Major: $180 – 220
DDS: $160 – 220
Specialty: $1050 – 1650
Bulky Goods: $170 – 270
Strip (non-CBD): $400 – 1500
MELBOURNE
Major: $230 – 250
DDS: $230 – 250
Specialty: $750 – 1500
Bulky Goods: $175 – 280
SYDNEY
Major: $250 – 600
DDS: $200 – 450
Specialty: $1000 – 2250
Bulky Goods: $150 – 450
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