Retail Market Update Q4, 2018

14 December 2018

The Retail sector has struggled to gain favour with investors this year with a much lower level of activity than in 2017. The increase risks in the sector with an increasing online market, the deterioration in major stores performance and a lack of wages and price growth is starting to impact the sector. Whilst we have recorded a similar number of Retail property sales this year at 118 , vs 119 last year, the mix of assets is vastly different. As the charts below show, this year, sales have been dominated by Neighbourhood with much fewer Super Regional, and Bulky Goods Centres than last year. Yields across the sector have also shifted over the year with most PCA grades recording a softening of yields from 2017. On average the sector softened by 120bps compared to Dec 2017, with most of the softening attributed to a poorer quality offering in the CBD and Sub Regional Sectors. Yield compression has been evident in Neghbourhood and Regional centres where the depth of capital is greater and the impact of discretionary expenditure is less. Head to for more information. #RetailData