Auckland Retail Report | Second Half 2018
The retail supply pipeline is the largest it has been this cycle with 179,380 sqm of space to be built in the next few years. This is attracting a number of new tenants to the sector, some from offshore. The development pipeline will alleviate long-term demand pressures, but this could also see a potential rise in vacancy.
Many retailers will be faced with steady and moderate rental growth. Retailers wanting to position themselves in new major centres will face strong competition and higher rental rates.
Online food delivery services are reshaping the way retailers use property with the rise of online-only restaurants known as ‘ghost restaurants’. New Zealand saw it’s first ‘ghost restaurant’ on Auckland’s Ponsonby Road.
In August, Precinct Properties’ Commercial Bay retail centre opened their first store, H&M’s flagship store. The remaining retail space is anticipated to be completed by September 2019.
Kiwi Property have announced Kmart will be opening a store at Sylvia Park replacing the existing Countdown.