AG REAL ESTATE’s Post

Our latest snapshot - Retail Revival - provides commentary on retail in EMEA markets. My top takeaways for my network: 🔮 Looking forward, at least 10% of markets expect rental growth in both luxury and mainstream HS locations over the next 12 months. The remainder anticipate a more stable rent regime, which will support continued investment activity on Europe’s luxury and mainstream high streets. (Expect this stimulates a different response from investors and occupiers. Rental growth = anticipated rateable value increases which need assessment) 🛍️ Average retail spend is forecast to grow +0.8% across 2024 on a local population basis, with a mixed picture across Europe. Forecasts suggest this will be led by discretionary spending (sorry hubby!) which is set to expand faster than essentials. 💰 Shopping centre transactions represent a much higher proportion of investment activity than the 10-year average in the majority of markets year to date. Rental outlooks have improved with none of the top markets are factoring in rental declines. We are told relatively higher yields available for shopping centres will continue to drive a rebound in investment for the year ahead. (Good news for town centres, new opportunities for retailers and we could assume more improvement works will follow)

Record-breaking retail. Today we are proud to announce three of our Greater Toronto Area shopping centres have been named ICSC top performers. 🛍️ Yorkdale ranks as Canada’s top performing shopping centre once again with per square foot sales 65% higher than its closest competitor. Yorkdale is also the first shopping centre globally to receive a WELL Performance Rating seal from the WELL Building Standard™, a certification awarded to buildings with a demonstrated commitment to high building-performance and enhanced community experiences. 🛒 Square One achieved a $1 billion-dollar annual sales performance milestone for the first time in its 50-year history. The centre has also seen a notable sales increase of more than $100 per square foot, representing three percent annual growth. Square One is now the Greater Toronto Area’s third highest performing shopping centre and ranks among Canada’s top six shopping destinations. 💳 Scarborough Town Centre drove a 12% annual sales growth bringing this community destination into ICSC’s top 25 most successful Canadian shopping centres with total sales of nearly half a billion dollars. The redevelopment of the former Sears box that welcomed the area’s first, highly anticipated IKEA and Decathlon in 2023 contributed to these impressive results. For more » https://bit.ly/4aO4hyr

Great article by Rosen Report on why in-store retail is NOT DEAD. Visits to indoor malls have increased by 8.6% since 2023, open-air shopping centers by 6.2%, and outlet malls by 5.7%. GenZ is boosting mall growth, with 97% valuing in-person shopping. They go to malls to hang out with friends, showing a preference for the brick-and-mortar experience. Customers appreciate trying products in-store, getting expert advice, and enjoying dynamic experiences that blend technology. And, Luxury Outlet Sales have surged by 35% from 2021, according to Forbes. Embracing technology and creating engaging in-store events is key to drawing people back to physical retail spaces. #RetailTrends #GenZShopping #LuxuryRetail #outlets #customerengagment #malls #technology #customerexperience #rosenreport #NBC #GenZ #retailers #TopRetailExpert #Forbes #events Stephen Yalof Chris Igwe Tanger Olivia MeyerClay Lute Ian Scott Matt Mueller RETHINK Retail Ghalia Boustani. Ph.D Lisa Quier Wagner

Shopping malls are the most dynamic and complex real estate class. One, the retail mix of a mall is constantly changing and evolving. Two, your customer profile, while steady, can change in terms of the stage of life and hence their needs. Three, it has to be relevant to your catchment and audience. The shopping mall industry is fairly nascent – about 20+ years old. While it has stabilized as an industry with a fairly large number of malls across the country, its biggest challenge was the pandemic and the subsequent digitalization of customers' lives and lifestyles. This has led to many malls losing footfalls and hence reducing sales. On the other hand, the most adept and nimble-footed have pivoted and altered their retail mix and marketing approach to remain relevant and continue to grow. So how do malls ensure that they remain relevant and grow their revenues? That’s what I will be discussing with my esteemed industry colleagues Jonathan Yach mRICS, M.Inst.D, Abhishek Sharma, Ankit Gupta, MRICS at the RICS webinar on “𝐑𝐞𝐭𝐚𝐢𝐥 𝐒𝐡𝐨𝐩𝐩𝐢𝐧𝐠 𝐌𝐚𝐥𝐥𝐬: 𝐇𝐨𝐰 𝐭𝐨 𝐌𝐚𝐧𝐚𝐠𝐞 𝐓𝐡𝐞𝐬𝐞 𝐂𝐨𝐦𝐩𝐥𝐞𝐱 𝐏𝐫𝐨𝐩𝐞𝐫𝐭𝐲 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭𝐬 𝐁𝐞𝐭𝐭𝐞𝐫!” 📅 Date: Thursday, 25 July 🕓 Time: 4:00 PM to 5:15 PM IST 💡 Topic: "Retail Shopping Malls: How to manage these complex property investments better!" This webinar is open to RICS members, candidates, and non-members. Don't miss this opportunity to gain valuable insights and strategies for managing retail shopping malls! 🔗 Register now: https://lnkd.in/gb6aNnvd For more information about the webinar, contact Sheetal Aneja at saneja@rics.org

The Changing Face of Retail Australia’s largest shopping centres are undergoing a significant transformation to their tenancy mix following new consumer spending patterns after the COVID 19 pandemic, according to the latest PAR Group study. In spite of rising cost of living pressures, a number of low price-point retailers have vacated major centres, while luxury retailers have become more prevalent within the same centres since 2020. The study reviewed the occupancy of two major shopping centres in each mainland Australian state (NSW - Bondi Junction and Warringah Mall, Victoria – Chadstone and Highpoint, Queensland – Chermside and Pacific Fair, South Australia – Marion and Tea Tree Plaza and Western Australia – Carousel and Lakeside Joondalup) using data from 2020 and late 2023. In total 3,373 tenancies across these 10 centres were reviewed as part of this study. (click on image for more)

Next week 12th and 13th November the Shopping Centre & Mall Industry meets in Antalya in Turkey. I am happy to be one of the speakers and am starting to prepare for my speech on the topic «How to create a future-ready Shopping Centre & Mall Strategy on the road to 2030». The Retail and the Shopping Centre Industry are in the midst of a perfect storm. In the past, at least some areas were «certain». But today «everything» is shaky and unstable. The challenges are 360 degrees:   • Markets: new business formats appear • Customers: expectations are raising alongside • Labour market: skilled people are scarce • Sourcing: Supply chains are deglobalizing • Technology: The AI race is on • ... Nobody can predict what this means for the world of Shopping Centres. Where and how will people shop in 5-10 years? Why should they go to Shopping Malls? And how will they look like? My take is: 𝗔𝗹𝘀𝗼 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀 𝗮𝗿𝗲 𝟯𝟲𝟬 𝗱𝗲𝗴𝗿𝗲𝗲𝘀. 🎯 Especially in the Retail and Shopping Centre Industry. Adapting to changes is getting increasingly difficult, if not impossible. Such a defensive approach in retail is life-theratening. Every month we see Retailers disappearing from the market. We need to bring in tools from futures studies into strategic management. To draw up business plans that are in line with the (mega)trends that shape the future. And that are based on the strengths and the opportunities of each Shopping Centre. So that they are hold for 3-5 years and allow leaders to escape the risky short-term adjustment mode. And let malls thrive in our uncertain and disruptive world. How often are you visiting shopping malls? And what do you think will keep you doing this in 5-10 years from now?

The number of ghost shopping malls – those with vacancy of more than 40%– increased to 64 last year from 57 in 2022 across eight major cities as retailers and consumers are preferring premium properties. Click on the link below to know more... #retailnews #retailtrends #retailsector #retailindustry #retailing #retailresults #retailupdates #businessnews #retailgrowth #retailsectornews #retailindia #retailtrends #retailbusiness #ir #IndiaRetailing

Shopping centres are thriving in 2024! Despite cost-of-living pressures and the rise of online shopping, Australia’s major shopping centres are making a strong comeback. Retail rents are rising, mall valuations are stabilising, and returns are outpacing even the logistics sector. Key drivers of this resurgence?  - Limited New Supply: With population growth outpacing retail space availability, demand for prime locations pushes rents upward.  - Evolving Tenant Mix: Shopping centres are embracing "high-touch, high-engagement" experiences, with fitness, wellness, and entertainment brands driving foot traffic.  - Strategic Leasing: Recent lease spreads are positive, with rents increasing 2.7%- 3.5% on average and annual fixed escalations of 4.9%- 5.5%. The result? Investor confidence is soaring, with large shopping centres back "in favour" and transactional volumes hitting their highest levels since 2018. As retail real estate adapts to new consumer expectations, these trends highlight the resilience and innovation shaping the industry. At LeaseInfo, we’re passionate about supporting retailers with cutting-edge tools and insights to navigate this evolving landscape. Find out more https://leaseinfo.digital/ The Australian Financial Review Simon Fonteyn Robert Harley

ICSC collected sales numbers for shopping centres in Canada at the end of 2023, ranking the country’s top malls based on reporting retailers, reported Retail Insider. "The Yorkdale shopping centre in Toronto was nearly $1,000 higher than the next mall on the list, CF Toronto Eaton Centre. Yorkdale’s productivity number was $2,402 a square foot in 2023, which was $176 higher than numbers collected in 2022. CF Toronto Eaton Centre in 2023, in comparison, saw sales of $1,457 per square foot last year. Yorkdale also saw sales of $2.1 billion in 2023, about eight percent higher than the year before. It’s the only shopping centre in Canada to have annual sales exceeding the $2 billion mark." https://lnkd.in/gm8fpES8 #canada #shoppingcentres #productivity