Limited sales activity in Coffs Harbour retail market: HTW

Limited sales activity in Coffs Harbour retail market: HTW
Limited sales activity in Coffs Harbour retail market: HTW

There has been limited sales activity within Coffs Harbour’s retail market as property within the CBD is tightly held and rarely offered, according to Herron Todd White’s (HTW) latest report.

The property valuation firm says that this is despite there being a prevailing high vacancy rate within the prime strip centre.

Many retailers are finding it difficult to meet overheads.

"There is a trend for affordable retail rental space outside prime locations, however overall vacancy rates remain high for retail space," the report said.

"The high vacancy rate in the CBD is due to the difficult local economy with limited consumer discretionary spending, the reluctance of landlords to reduce rents or meet the market and the poaching of tenants by the Central and Plaza Shopping Centres.

"There is steady demand for the purchase of retail property emanating from investors against a shortage of supply in recent times."

The Gowings Central shopping centre development and the eastern end of the CBD appears to be trading well after the upgrade transformation.

The renovated ex-CBA bank building has increased the appeal and feel of this end of the retail precinct, HTW said.

Gowings are proposing an extension to the retail centre to office and hotel accommodation.

"Retail yields are generally in the 6% to 8% range depending on tenant, lease terms, location and property detail," said the report.

"Grafton commercial retail market displays higher investment yield rates.

"Yields are generally within the 7% to 9% range.

"The market remains steady with a slight uplift in the local economy.

"Nambucca and Macksville retail centres appear steady with some vacancy but improved local economy due to the Pacific Highway relocation works and associated workforce."

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Coffs Harbour Htw

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