Savills Research Queensland Quarter Times Brisbane Retail Q1/2016
Key Market Indicators Brisbane Enclosed Centres Regional Sub Regional Neighbourhood Low High Low High Low High Supermarket Tenant Gross Rental ($/ sq m) 300 450 300 450 300 450 DDS Tenant Gross Rental ($/sq m) 200 275 200 275 na na Specialty Tenant Net Rental ($/sq m) 900 1,800 600 1,200 400 800 Yield - Market (%) 5.00 6.00 6.5 7.00 6.00 7.75 IRR (%) 7.50 7.75 7.75 8.25 7.50 8.50 Outgoings Operating ($/sq m) 138 174 102 137 73 99 Outgoings - Statutory ($/sq m) 39 49 30 43 24 42 Outgoings - Total ($/sq m) 177 223 132 180 97 141 Capital Values ($/ sq m) 6,600 10,000 3,000 5,600 3,000 6,000 Source: Savills Research. na not applicable Brisbane Shops Queen St Mall Other CBD Shopping Strip Low High Low High Low High Net Rental ($/sq m) 2,700 7,000 750 1,700 300 800 Yield Market (%) 5.50 7.00 5.50 7.75 7.00 8.50 Outgoings Operating ($/sq m) 80 160 80 160 30 50 Outgoings - Statutory ($/sq m) 120 240 80 160 20 20 Outgoings - Total ($/sq m) 200 400 160 320 50 70 Capital Values ($/sq m) 50,000 95,000 9,000 27,000 2,500 7,000 Source: Savills Research. Brisbane Large Format Retail Centres Large Format Retail Low High Tenant Gross Rental ($/sq m) > 1,000 sq m 150 250 Yield Market (%) 7.50 8.50 IRR (%) 9.00 10.00 Outgoings Operating ($/sq m) 28 48 Outgoings - Statutory ($/sq m) 14 27 Outgoings - Total ($/sq m) 42 75 Capital Values ($/sq m) 1,750 3,300 Source: Savills Research. savills.com.au/research 2
Major Sales Activity Select Regional and Sub-regional Shopping Centre Sales Date May-15 Hinkler Central, Bundaberg 110.00 20,754 5,300 6.63 Jun-15 Big Top Shopping Centre, Maroochydore 77.75 13,024 5,970 7.10 Jul-15 Lutwyche City Shopping Centre, Lutwyche 65.00 18,929 3,434 7.00 Aug-15 Westfield Strathpine, Strathpine 283.00 44,608 6,344 7.10 Dec-15 Sugarland Shopping Centre, Bundaberg (50%) 61.50 22,795 5,396 ND Source: Savills Research. ND - not disclosed Select Neighbourhood Shopping Centre Sales Date Nov-15 Woolworths Moorooka Shopping Centre 27.30 4,893 5,579 6.60 Nov-15 Coolum Park Shopping Centre 19.75 3,992 4,947 6.75 Dec-15 Greenbank Shopping Centre (incl. $10m devt site) 33.00 5,607 4,102 6.64 Dec-15 Nambour Mill Village Shopping Centre 28.57 6,460 4,423 7.25 Dec-15 Coles Centre Upper Coomera 12.50 2,808 4,452 6.79 Feb-16 Mountain View Plaza, Kirwan 4.80 3,383 1,419 9.40 Source: Savills Research. excludes land component of the sale Select Large Format Retail Centre Sales Date Sep-15 Petbarn, Browns Plains 7.55 2,080 3,630 7.40 Oct-15 Bunnings Springfield Central, Springfield 40.10 15,972 2,511 5.27 Oct-15 Morayfield Supacentre, Morayfield 75.00 28,000 2,679 7.35* Oct-15 Officeworks, Woolloongabba 8.20 2,099 3,907 5.80 Nov-15 Bunnings North Mackay 31.60 13,043 2,423 6.08 Nov-15 Focus@Rothwell, Rothwell 30.68 11,088 2,767 10.29 Nov-15 Homestyle Homemaker Centre, Morayfield 34.75 12,806 2,714 7.72 Nov-15 Officeworks, Maroochydore (pre-sale date April-14) 6.80 2,077 3,298 6.89 Source: Savills Research. *Equated market yield savills.com.au/research 3
Select Select Freestanding Retail Date, May-15 KMART, Oxenford 22.69 6,200 3,660 5.95 Sep-15 Woolworths Burleigh, Burleigh Heads 7.32 731 10,014 5.40 Nov-15 Big W, Atherton 10.35 4,480 2,310 8.69 Dec-15 KFC, Kedron 3.80 187 20,321 4.84 Jan-16 Hope Island Tavern, Hope Island 10.20 1,565 6,518 na Source: Savills Research. na - not available CBD, Retail Strip Shops & Other Retail Date, Sep-15 222 Montague Rd, West End 6.65 2,500 2,660 3.15 Dec-15 Cannon Park City Centre And Discount Centre, Thuringowa 31.50 12,464 2,527 8.61 Dec-15 Crossroads Retail & Commercial Centre, Strathpine 8.25 1,856 4,445 8.03 Jan-16 338 Waterworks Rd, Ashgrove 5.70 796 7,161 6.90 Feb-16 DFO Jindalee 46.60 16,485 2,827 7.30 Feb-16 Noosa Junction Shops, Noosa 4.76 725 6,566 6.60 Mar-16 DFO Cairns 39.70 25,063 1,584 9.03* Mar-16 Narangba Village, Narangba 9.48 1,819 5,212 7.50 Source: Savills Research. na - not available *Equated market yield savills.com.au/research 4
Current Retail Construction Major Centres Currently Under Construction (>1,000sq m) Centre Name Suburb Type New (sqm) Extension (sqm) Refurb (sqm) Completion Pacific Fair Shopping Centre Broadbeach Waters Super Regional 42,700 Apr-16 Woolworths Shopping Centre Loganholme Neighbourhood 6,500 Apr-16 Woolworths Shopping Centre Banyo Neighbourhood 5,537 Apr-16 Woolworths Shopping Centre Wynnum Neighbourhood 5,628 Apr-16 Coomera East Woolworths Shopping Centre Coomera Neighbourhood 2,644 Jun-16 Centro Whites Hill Shopping Centre Camp Hill Neighbourhood 1,100 Jun-16 Southpoint Mixed Use South Brisbane Neighbourhood 5,000 Jun-16 Peregian Village Market Peregian Beach Neighbourhood c 2000 Jun-16 Coles Supermarket Pacific Pines Freestanding 4,322 Jul-16 ALDI Foodstore Urangan Freestanding 1,500 Jul-16 Westfield Northlakes Stg 3 & IKEA North Lakes Super Regional 71,194 Aug-16 Calliope Central Shopping Centre Calliope Convenience 1,479 Aug-16 Park Ridge Shopping Centre Park Ridge Sub-regional 8,396 5,265 Sep-16 Robina Town Centre Food Market Mall Robina Neighbourhood na Oct-16 Orion Shopping Centre Stg 3 Springfield Lakes Regional 23,193 Nov-16 Town Square Stage 1 Redbank Plains Regional ~16,930 Nov-16 WAM Central Stgs 1 & 2 Wamuran Convenience 5,965 Nov-16 Grand Central Garden Town Toowoomba Super Regional 43,825 Nov-16 ALDI Foodstore West Gladstone Freestanding 1,955 Dec-16 North Lakes Dr LFR North Lakes Large Format 11,899 Dec-16 Coles Shopping Centre Stg 1 Sippy Downs Freestanding 4,234 Dec-16 Willows Shopping Town North Stg 2 Thuringowa Central Sub-regional c 7,000 May-17 Town Square Stage 2 (Redbank Plains Shopping Centre) Redbank Plains Regional ~2,861 5,900 Mid-2017 Parkhurst Shopping Town Parkhurst Neighbourhood 8,290 Jun-17 Coles Shopping Centre Silkstone Neighbourhood 4,997 Jun-17 Augusta Village Shopping Centre Augustine Heights Convenience 1,357 Sep-17 Yamanto Shopping Centre Yamanto Shops 1,901 Dec-17 Source: Cordell Reed Construction Data/Savills Research. na not currently available This information is general information only and is subject to change without notice. No representations or warranties of any nature whatsoever are given, intended or implied. Savills will not be liable for any omissions or errors. Savills will not be liable, including for negligence, for any direct, indirect, special, incidental or consequential losses or damages arising out of our in any way connected with use of any of this information. This information does not form part of or constitute an offer or contract. You should rely on your own enquiries about the accuracy of any information or materials. All images are only for illustrative purposes. This information must not be copied, reproduced or distributed without the prior written consent of Savills. Savills 2015 savills.com.au/research 5
Savills Australian Capital Territory Research Valuations Sales & Leasing Project Management Houssam Yakzan +61 (0) 2 8215 8980 hyakzan@savills.com.au Phil Harding +61 (0) 2 6221 8293 pharding@savills.com.au Theo Dimarhos +61 (0) 2 6221 8275 tdimarhos@savills.com.au Mitchell Thomas +61 (0) 2 6221 8294 mthomas@savills.com.au Savills New South Wales Research Research Valuations Retail Sales Tim Mitchell +61 (0) 2 8215 8856 tmitchell@savills.com.au Houssam Yakzan +61 (0) 2 8215 8980 hyakzan@savills.com.au Chris Paul +61 (0) 2 8215 8850 cpaul@savills.com.au Steven Lerche +61 (0) 2 8215 8929 slerche@savills.com.au Metro & Regional Sales Retail Leasing Retail Management Project Management Robert Lowe +61 (0) 2 8215 8841 rlowe@savills.com.au Leighton Hunziker +61 (0) 2 8215 8838 lhunziker@savills.com.au Thomas Brown +61 (0) 2 8215 8893 tbrown@savills.com.au David Nicholas +61 (0) 2 8913 4813 dnicholas@savills.com.au Savills Queensland Research Valuations Retail Sales Retail Leasing Yvette Burton +61 (0) 7 3002 8829 yburton@savills.com.au Lawrence Devine +61 (0) 7 3002 8822 ldevine@savills.com.au Peter Tyson +61 (0) 7 3002 8807 ptyson@savills.com.au Garry McDowall +61 (0) 7 3002 8920 gmcdowall@savills.com.au Retail Management Sunshine Coast Gold Coast Project Management Leonie Deaves +61 (0) 7 3002 8907 ldeaves@savills.com.au Scott Gardiner +61 (0) 7 5313 7514 sgardiner@savills.com.au Kevin Carmody +61 (0) 7 5509 1700 kevin@savillsgc.com.au Andy Hogg +61 (0) 7 3018 6738 ahogg@savills.com.au Savills South Australia Research Valuations Retail Sales City & Metropolitan Sales Katy Dean +61 (0) 8 9488 4140 kdean@savills.com.au Alastair Johnston +61 (0) 8 8237 5041 acjohnston@savills.com.au Peter Isaksson +61 (0) 8 8237 5020 pisaksson@savills.com.au Steve Bobridge +61 (0) 8 8237 5015 sbobridge@savills.com.au Retail Leasing Retail Management Project Management Sam Morris +61 (0) 8 8237 5030 smorris@savills.com.au Jeffrey Klaebe +61 (0) 8 8237 5018 jklaebe@savills.com.au Steve Christodoulou +61 (0) 8 8237 5004 schristodoulou@savills.com.au Savills Victoria Research Valuations Capital Transactions Investment Sales Monica Mondkar +61 (0) 3 8686 8034 mmondkar@savills.com.au Stuart Fox +61 (0) 3 8686 8029 sfox@savills.com.au Dominic Long +61 (0) 3 8686 8031 dlong@savills.com.au Pat De Maria +61 (0) 3 8686 8080 pdemaria@savills.com.au City Sales Retail Leasing Asset Management Project Management Clinton Baxter +61 (0) 3 8686 8021 cbaxter@savills.com.au Michael Di Carlo +61 (0) 3 8686 8071 mdicarlo@savills.com.au Greg Makin +61 (0) 3 8686 8055 gmakin@savills.com.au Chris Adam +61 (0) 3 9445 6841 cadam@savills.com.au Savills Western Australia Research Valuations Capital Transactions City & Metropolitan Sales Katy Dean +61 (0) 8 9488 4140 kdean@savills.com.au Mark Foster-Key +61 (0) 8 9488 4145 mfosterkey@savills.com.au Paul Craig +61 (0) 8 9488 4156 pcraig@savills.com.au Chas Moore +61 (0) 8 9488 4155 cmoore@savills.com.au Retail Leasing Retail Management Project Management Chris Ireland +61 (0) 8 9488 4179 cireland@savills.com.au Jason Ridge +61 (0) 8 9488 4118 jridge@savills.com.au Graham Nash +61 (0) 8 6271 0306 gnash@savills.com.au