Refurbishment of shopping centres is leading to trading success: JLL

Shopping Centre Managers have been reporting refurbishments are the key to retail success in a competitive market, according to the latest JLL Retail Survey.

The survey shows food operators continue to drive tenant enquiry as well as centre managers continued optimism about factors within their control – refurbishments and tenant remix. However more negative about external factors like fuel prices

JLL’s 19th Retail Centre Managers’ Survey was undertaken in August across 88 JLL-managed retail shopping centres nationally. The majority of centres were neighbourhood and sub-regional centres.

JLL’s Head of Property & Asset Management – Australia, Richard Fennell said, “The Survey showed that 42% of JLL Centre Managers made a positive comment about the recent performance of their centres in relation to an improvement in sales trends, tenant sentiment, foot traffic and/or leasing enquiry."

“JLL Centre Managers continued to view ‘expected changes to tenancy profile’ as having the most positive impact on the MAT outlook or their centres. More than half of survey respondents (61%) stated that it would drive sales growth over the next 12 months, up from 55% in the previous survey in February this year,” noted Mr Fennell.

When asked what factors were impacting turnover performance, the survey found the strongest positive factors were ‘expected changes in tenancy profile’ (with a net balance of 54%), ‘growth expectations within trade area’ (30%) and ‘planned refurbishment activity’ at 17%

The top three negative factors impacting on turnover have remained consistent with previous surveys. Fuel prices (with a net balance of -26%), competition from other centres (-25%) and online retailing (-20%) remain the top concerns as they have over the past year.