Shopping centres move to change with the online times
QUEENSLAND shopping centres will continue to adapt to the realities of the online onslaught with more "alternative use" tenants forecast to set up shop in traditional bricks-and-mortar retail assets.
Owners will increasingly seek ways to "socialise" their shopping centres and create a mixed-use community precinct with a range of offerings from local government services to childcare centres, offices and medical/health hubs.
JLL national director, retail investments, Jacob Swan said in 2019 there will be a greater focus on "hands-on" asset management by shopping centre owners to extract the best possible results.
"We anticipate seeing increased alternative use tenants popping up in traditional retail centres, including co-working spaces, childcare and larger medical/essential service offerings," he said.
CBRE national director of retail investments Mark Wizel said while e-commerce has taken a sizeable chunk of the market share, traditional shopping centres remained central to consumers and an important part of the neighbourhood.
"Indeed, it might be argued that the e-commerce threat has been a blessing in disguise in forcing an overdue revitalisation of the shopping centre offering - taking shape in the form of a successful tenancy remix strategy," he said.
"It wouldn't be surprising to see further efforts to socialise shopping centres as meeting places - in much the same manner that strip centres/township centres have done via alfresco dining and the like."
Mr Wizel said shopping centre owners were "broadening their thinking".
"We've seen landlords respond to the e-commerce challenge and its impact on consumer spending within shopping centres - particularly across the fashion industry," he said.
"Remixed tenancies have supported growth in food and beverage as well as service based retailing, while efforts to keep customers in centres longer have also included more family friendly facilities such as safe/supervised children's play areas."