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Returning consumer confidence has propelled Australian retail investment skyward, with the number of major retail assets transacted over 2021 hitting a record of $12.7 billion, according to new research from Colliers.
The brand’s new Retail Capital Markets Investment Review found there was an 82 per cent increase in major retail assets – meaning properties worth over $10 million – sold in 2021 compared to 2020.
Overall, 166 properties above the $10 million threshold were sold throughout the year, compared to 91 in the 12 months prior.
“The $12.7 billion in retail investment represents an all-time high for the Australian market,” said Lachlan MacGillivray, Colliers’ head of retail investment in Australia.
“The recovery of consumer confidence, and the eagerness of consumers to return to bricks and mortar stores, has continued to support the growing industry while pent-up demand and ability to spend has supported asset turnover and allowed investors to see upside potential and opportunity,” he said.
The company saw a particular increase of high-net-worth investors and major superannuation funds looking to put their capital into land or development-rich assets.
“The consumer preference for social interaction and experience has reinforced asset performance and fuelled a recovery in spending,” Mr MacGillivray said, noting that retail centres had been helped by a recent transformation from pure transactional marketplaces into more of a hub for the surrounding community.
“Assets have reduced dependence on fashion retailers and increased alternative offerings, such as commercial, food, wellness, entertainment and lifestyle components.”
In Colliers’ view, this diversification has served to turn traditional retail venues into something more like a town centre.
“More assets are now including complementary sectors such as office, residential and healthcare to increase foot traffic and support demand. This has been implemented to ensure an added value to the retail core and to support the community,” Mr MacGillivray said.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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