Vacancy at popular Adelaide CBD shopping strip drops to 2.8 per cent since September 2016
In the eight months since September 2016, vacancy in Adelaide’s Rundle Mall has fallen from 4.2 per cent to 2.8 per cent.
The 1.4-per-cent drop represents the lowest level of vacancy for the CBD shopping strip in four years, as recorded in Colliers International’s latest Research and Forecast Report for its Retail product line, compiled by associate director for Research, Kate Gray.
Several new tenants have contributed to these numbers, including Levi’s at 74 Rundle Mall, Lululemon at 98 Rundle Mall and Gong Cha at 6 Rundle Mall.
Colliers International’s director of Retail Leasing for South Australia, Ben Laycock, said the Rundle Mall uptake was due in part to the state’s retail sales continuing to sit above the national average.
“Retailers are recognising the strength of the Adelaide shopping market and wanting to set up in a prime location,” he said.
“Demand for retail space in Rundle Mall has lifted, which has resulted in vacancy falling. Clothing and footwear remains the key tenant type, accounting for almost 40 per cent of the tenants in the precinct.”
Several Rundle Mall tenants have moved to different shopfronts throughout the past half-year, including Mazzucchelli’s, Temt, Hairhouse Warehouse, Pandora, Adidas and Jo Mercer.
Mr Laycock said that rents had remained steady despite the activity, sitting between $1,800 per sqm and $3,800 per sqm.
“Incentives have remained stable, from 15 to 20 per cent of a lease, but it is expected that as vacancy continues to tighten, incentives will start to fall, which will result in net effective rental growth,” he said.