Brisbane CBD retail vacancy rate tightens as global brands hit Queen Street Mall: Chart of the week

Speciality store vacancy rates in the Brisbane CBD are tightening as global brands like Zara, Topshop and Gap arrive on Queen Street Mall, says Jones Lang LaSalle (JLL).

The Brisbane CBD retail vacancy rate fell 0.4 percentage points over the second half of 2012 to be 3.7% as of December 2012 and, anecdotally, according to JLL, has edged further down in 2013.

The pedestrianised shopping strip crept up two places to be named the ninth most expensive retail space in the world at $US739 per square foot per annum (about $A8,024.25 per square metre).

In its May update, Jones Lang LaSalle notes that there appears stronger signs in 2013 that general demand is improving in the Brisbane CBD retail market.

The graph below shows Brisbane CBD vacancy rates trending down, against the national trend:

According to JLL, "leasing activity among food-based retailers has long been the primary source of demand in the market, but it now appears activity is improving among fashion-based retailers".

"A number of international retailers have, or are in the process of, entering the market, which is one driver of activity.

"Many of these retailers are implementing a large-format model and this ‘big box’ demand is creating a number of redevelopment opportunities in and around the Queen Street mall to accommodate these tenants, including Zara, Topshop, Gap and Hollister.

"As well as new mass market brands, the expansion of luxury brands in Brisbane continues, particularly along Edward Street, with Ermenegildo Zegna leasing 220 square metres at 155 Edward Street," says JLL.