Toowoomba retail market remains subdued in 2019: HTW Retail

Toowoomba retail market remains subdued in 2019: HTW Retail
Staff reporterDecember 7, 2020

Retail leasing in Toowoomba has been relatively subdued in 2019 with vacancy rates within the CBD increasing, according to the latest retail report from valuation firm Herron Todd White.

The property valuation firm found that this is likely due to the completion of the QIC Grand Central Shopping Centre redevelopment in 2018. The centre doubled in size to approximately 90,000 square metres, introducing new discount department stores, supermarket and approximately 160 speciality stores, with the latter considered to have drawn businesses from the CBD.

Rentals appear to have been relatively static, although some lease incentives are available for long term commitments.

The historically low interest rates have resulted in a strong demand for retail properties by investors, however the lack of supply of quality, fully leased properties has limited the number of investment sales and has resulted in a firming of net yields over the past two years.

The report noted, "despite strong investor demand there have been no major retail sales in Toowoomba in 2019."

"This is due to a lack of supply with most property owners electing to hold on to assets with good lease covenants and secure cash flow," it added.

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