SE Queensland to see 91,000sqm of new retail space this year

Two new neighbourhood centres were completed in Q1 alone.

According to a JLL report, two new neighbourhood centres reached completion in South East Queensland, both anchored by national supermarket chains. The refurbishment of a sub-regional centre (Australia Fair) completed at the Gold Coast.

In SE Queensland, 91,000 sqm of new retail is currently under construction, set to reach completion in 2024. 

Here’s more from JLL:

Annual retail trade continued to trend downwards in Queensland (1.4% y-o-y). Cost of living pressures are impacting consumption in 2024 as monthly retail trade growth for February was down -0.5% m-o-m, from 0.9% in January. 

Interest from retailers has remained stable, but leasing finalisation is experiencing delays. Food and Beverage tenants have pre-committed to a CBD development (Queen’s Wharf Casino) which is currently under construction. 

The Neighbourhood median yield softens over the quarter

Rents were unchanged over Q1 2024.

Neighbourhood upper yields softened 25 bps to range between 5.50%–7.50%.

Outlook: Moderate rent growth expected in 2024 for some sub-sectors

Consumers are likely to reduce discretionary spending in the near term, as inflated pricing and high lending costs dampen household disposable income. 

Small rent growth is forecast in some sub-sectors across SE Queensland. Expanding construction costs remain an obstacle to project feasibility; higher rents will be required to construct new retail space.

Note: SE Queensland Retail refers to South East Queensland's overall retail market.