Shopping centre lettable areas and use designations are evolving in line with the changing nature of retail and the way we live, work and play.
Shopping centres have always been social destinations. From the opening of the first modern shopping centre in Australia in 1957, described by a local newspaper as “an island of retailing in a lake of car parking”, shopping centres have evolved in line with changing environments and consumer behaviour.
The retail sector is facing strong headwinds in the changing Australian retailing environment and shopping centre owners need to re-evaluate their tenancy configurations and offerings to defend against disruptions.
Regional and sub-regional shopping centre GLA is being reallocated to innovative new uses as retailers need less physical stores to service the markets in which they operate.
Department stores Myer and David Jones are facing strong competition in Australia as e-commence retailing grows and international retailers, including Zara, H&M, Sephora and Uniqlo open stores across the country.