White Paper Excerpt: 'Shopping Centres - an Inconvenient Truth'
By Peter Buckingham CFE CMC
How do shopping centre owners press for increases in rents of 4% or 5% pa. when the increase in the $ / sq m. sold through the Centres has been increasing in the range of 0.5% – 1.65% pa. over the last few years?
Using data provided by The Property Council, and originally sourced from the Shopping Centre owners, the logic for these increases is not substantiated.
By doing a longitudinal study of a large group of shopping centres, and using The Property Council data, we can see that the $ / sq m (overall for the SC’s) has risen far less than CPI, and far, far less than the annual rental increases that become written into the Leases.
|Type of Centre
||% Increase 5 years to 2017
||% increase pa
Derived using MAT / GLAR from 2012 and 2017 Property Council data
|A full copy of the White Paper is available here »
Peter Buckingham is the managing director of Spectrum Analysis Australia Pty Ltd , a geodemographic and statistical company. Peter is both a Certified Management Consultant and a Certified Franchise Executive.