Location: Rundle Mall, Adelaide CBD
Brief: A strategic review of the asset was required to determine its ultimate development potential, particularly given recent and projected future trends in CBD retailing in Australia. A number of alternative redevelopment options were then assessed on the basis of the potential tenancy mix they would each deliver and their estimated sales and rental levels.
Methodology: Our report started with an overview of CBD shopping centres in Australia, focusing on recent trends in CBD retailing and providing examples of the most successful CBD centres. We then undertook a detailed review of Myer Centre Adelaide in terms of its current composition and performance, followed by examination of the various customer segments available to the centre, including trade area residents, CBD workers, students and visitors. Next, we considered the expected changes to the competitive environment within which the centre operates and also presented our views on the general outlook for growth in the local economy. Finally, based on all of the above, we prepared a SWOT analysis for the centre and projected its sales and rental potential under the various redevelopment options.
Result: The research findings of our strategic review were used by the client in their decision making about the optimal way forward for the asset. The centre is currently undergoing a full refurbishment, with the number of active retail levels reducing from six to five.