Shop rents in Sydney and Perth have risen recently thanks to increasing demand from large retailers, it has been claimed.
Jones Lang LaSalle's national retail update for October suggests that the lull in consumer spending that was experienced earlier in the year appears to now be over, the Australian newspaper reports.
The report outlined that major retail groups, such as Woolworths and Wesfarmers, expanded many of their brands in the third quarter of the year.
It also claimed that international retailers were also strong, such as US giant Costco.
"Retail vacancies have now stabilised at a relatively low level, and with modest levels of new construction in the pipeline, we expect that vacancies will remain relatively unchanged in most sub-markets over the next year," the Australian quotes the Jones Lang LaSalle report as saying.
Earlier in the month, David Rees, regional director and head of research at Jones Lang LaSalle, told the newspaper that private property investors have the chance to do well in Australia over the coming years if they pick up small retail assets.
Posted by Ravin Chatlani
