Townsville retail market to maintain status quo in 2020; Herron Todd White Commercial

The retail market in Townsville during 2020 is likely to maintain its status quo with the greater economic climate in the retail sector making for tough conditions, according to the latest report from valuation firm Herron Todd White.

“Generally speaking, we are seeing a firming in yields in the broader retail sector, however there appears to be limited potential for rental growth in the current environment and a higher risk of increasing vacancies on the back of looming lease expiries with no current commitment to re-lease,” said the March report.

“Ageing neighbourhood centres with a single anchor tenant will likely present a higher risk due to capital expenditure requirements and cash flow volatility.”

The potential for redevelopment of these centres in the current market is also limited.

The firm ultimately concluded that the smaller sub-neighbourhood centres offering a mix of fast food and drive through options are likely to remain the retail flavour during 2020.