Ongoing vacancies in the Rockhampton and Gladstone retail markets: HTW
The retail markets in Rockhampton and Gladstone have been similar in their evolution over the years, from their original beginnings in the heart of their respective CBDs, according to the latest Herron Todd White (HTW) commercial report.
The valuation firm took a look at the changing faces in the retail sector across the nation.
The report suggested whilst retailers continue to occupy these traditional areas, the changing demands of retailers and shoppers, the lack of parking, supply, and general retail economic conditions have resulted in ongoing vacancies within these precincts (East Street and Goondoon Street precincts).
Most tenants within these precincts are now generally local retailers and food outlets supporting the commercial businesses in the area. Rentals within this precinct are substantially less than those within shopping centres and the area therefore attracts new retail and commercial businesses that are sensitive to the affordability of the rental.
The HTW valuers note: "There are a handful of neighbourhood shopping centres that have evolved from the more traditional convenience centres. Convenience centres were typically anchored by a small grocer and supported by other convenience tenants such as butchers, bakeries, fish and chip shops, post offices etc.
"The changing way people now shop, including the introduction of online grocery shopping, and the emergence of the larger players in the local markets has resulted in a number of changes including a shift towards larger neighbourhood shopping centres generally anchored by an IGA, Coles or Woolworths supermarket.
"This has resulted in increased vacancies and issues with rental affordability within the smaller traditional convenience centres. We consider that the retail space will continue to evolve with new challenges created by technology."
As rental levels and affordability have become a critical factor for local retailers and smaller convenience grocers have made way for larger neighbourhood supermarkets, it has also seen a shift in the profile of tenant that retail centres appear to be trying to attract.
In many centres, there has been a slow shift from traditional retail outlets to medical and health focused tenants, who typically can afford the higher rentals that these centres demand.
In terms of what tenants are looking for now as opposed to 10 years ago, some of the most notable items are good exposure, good on-site car parking, disability access and single level tenancies. It is becoming increasingly difficult to lease retail tenancies that have no parking or are in double storey walk up buildings.
"We have seen a softening of rentals in recent years and an increase in incentives required, seen to a greater extent in Gladstone than in Rockhampton as a result of the local market conditions," the valuer noted.
"We consider that these have now stabilised to a new norm, however for tenancies in secondary locations or with poor presentation, leasing is difficult and extended periods of vacancy are being seen."
A Rockhampton City retail property has been listed for lease with the price of $25,00 per annum (pictured above)
Located at 300 Bolsover Street, the 210 square metre property consists 60 square metre of cafe, 150 square metre of storage and car park.
Other features include refrigerator display cabinet, stainless steal and cold room.
Another Rockhampton site is now on the market with the sale price of $780,000 (pictured above).
The site situated at 59-61 High Street, Berserker consists of two lots including one with a 653 square metre block of three shops and the other 645 square metre vacant one for lease.