Myer’s lease negotiations are very different to those in the past, said chief executive, Bernie Brookes.
“The discussion starts with the assumption that we don’t need that space,” he told a Sydney forum organised by global fund manager, TIAA Henderson Real Estate.
Myer has handed back space, and gained concessions, particularly on performance rents. But it is also opening new stores, in Perth’s Joondalup, Mount Gravatt in Brisbane, Darwin, and Greenhills south of Sydney.
In fact Mr Brookes said Australia would still have around 100 department stores in several years’ time and then perhaps even more department store space.
Tony Dimasi, the managing director of Macroplan and a veteran shopping centre analyst, said that online purchases would rise from 6 to 10 to 12 per cent of total product turnover.
In the physical world, that would require around 3 million square metres of retail space.
Australia has around 50 million sqm, rising to 65 million sqm,” he said. “Online retailing will certainly take the edge of growth, but it is not the alarmist scenario.”
MacroPlan’s experienced and qualified economists align their understanding of macro-economic forces with micro-economic variables such as geographic and industrial characteristics, demographics, labour market shifts, resource demand and commercial realities. Contact Tony Dimasi, Managing Director – Retail today to discuss your retail property research requirements.