savillsresearch quarter times melbourne retail q4 2013

Savills Research Victoria

Quarter Times Melbourne Retail Q4/2013

Savills Research | Quarter Times Quarter 4 2013

savills.com.au/research 2

Key Market Indicators

Melbourne Enclosed Centres

Regional Sub-Regional Neighbourhood

Low High Low High Low High

Major Tenant Net Rental ($/sq m) 230 250 200 240 200 240

DDS Tenant Net Rental ($/sq m) 230 250 200 240 na na

Specialty Tenant Net Rental ($/sq m) 750 1,500 550 1,250 450 550

Yield - Market (%) 5.50 7.00 7.25 9.00 7.25 9.00

IRR (%) 8.50 9.25 9.00 9.75 9.00 10.00

Outgoings Operating ($/sq m) 90 120 75 110 45 75

Outgoings - Statutory ($/sq m) 30 40 25 35 25 35

Outgoings - Total ($/sq m) 120 160 100 145 70 110

Capital Values ($/sq m) 4,000 12,000 2,500 5,000 2,000 4,500

Source: Savills Research

Melbourne Shops

Bourke St Mall Other CBD Shopping Strip

Low High Low High Low High

Net Rental ($/sq m) 6,500 10,000 1,200 4,000 550 1,400

Yield - Market (%) 3.50 5.50 4.00 7.00 4.00 7.50

Outgoings Operating ($/sq m) 80 100 60 100 30 50

Outgoings - Statutory ($/sq m) 150 160 80 80 40 40

Outgoings - Total ($/sq m) 230 250 140 180 70 90

Capital Values ($/sq m) na na 14,000 40,000 7,500 35,000

Source: Savills Research na = not currently available

Melbourne Bulky Goods

Bulky Goods

Low High

Tenant Net Rental ($/sq m) > 1,000sq m 175 280

Yield - Market (%) 9.00 10.50

IRR (%) 10.00 11.00

Outgoings Operating ($/sq m) 25 30

Outgoings - Statutory ($/sq m) 7 7

Outgoings - Total ($/sq m) 30 40

Capital Values ($/sq m) 1,300 2,700

Source: Savills Research



Major Sales Activity

Select Retail Shop Sales

Date Property Price ($m) GLA (sq m) $/sq m Yield (%)

Jun-13 179-181 Domain Rd, South Yarra 4.83 330 14,636 na

Jun-13 105-109 Wattletree Rd, Malvern 3.40 640 5,313 na

Jun-13 40-46 Little Bourke St, Melbourne 5.30 1,022 5,186 5.48

Jun-13 268-270 Lonsdale St, Melbourne 7.15 498 14,357 2.74

Jun-13 565-567 Church St, Richmond 2.05 257 7,977 na

Jun-13 1255 Frankston Dand Rd Carrum Downs 3.82 300 12,733 7.17

Jul-13 408-414 Swan St, Richmond 10.00 1,800 5,556 na

Aug-13 454 Toorak Rd, Toorak 7.43 744 9,980 5.25

Sep-13 403-403a St Kilda Rd, Melbourne 4.32 481 8,981 4.13

Oct-13 4 Princess Domain Dr, Hallam 15.61 3,552 4,395 5.96

Oct-13 231-233 Russell St, Melbourne 5.05 450 11,222 4.40

Oct-13 50-52 Wells St, Frankston 5.38 736 7,303 6.31

Oct-13 Shop1, 92-98 Evans St, Sunbury 5.03 2,500 2,012 9.42

Oct-13 462-472 Elizabeth St, Melbourne 18.00 950 18,947 na

Nov-13 254 Collins St, Melbourne 14.21 398 35,704 4.42

Nov-13 460-488 Riversdale Rd, Camberwell 9.00 1,337 6,731 8.16*

Nov-13 761 Burke Rd, Camberwell 13.00 1,457 8,922 na

Nov-13 138 Bourke St, Melbourne 20.00 4,800 4,167 8.50

Nov-13 164-168 Greville St, Prahran 9.10 1,890 4,815 6.79

Source: Savills Research na = not currently available *equated yield VP = vacant possession

Select Enclosed Centre Sales


May-13 Showground Village Flemington (75%)** na 11,054 na na

May-13 Taylors Hill Village (75%)** na 7,431 na na

May-13 Lilydale Village (75%)** na 5,452 na na

May-13 Tarneit West Village (75%)** na 5,020 na na

Jun-13 Healesville Walk 21.20 4,971 4,265 7.93

Jun-13 Langwarrin Plaza** 17.20 5,087 3,381 7.80

Jun-13 Alfred Square, Ballarat** 20.00 8,964 2,231 7.50

Jun-13 Drouin Central** 12.30 3,798 3,239 8.00

Jun-13 Ocean Grove Marketplace** 29.90 6,910 4,327 7.50

Jun-13 Target Centre Warrnambool** 19.50 6,984 2,792 8.00

Jun-13 Wyndham Vale Square** 18.20 6,914 2,632 8.00

Jun-13 Sunshine Marketplace (50%)** 40.50 33,812 2,396 7.42

Jun-13 Bacchus Marsh Village Shopping Centre 31.60 15,147 2,086 8.75*




Jul-13 65 Merchant St, Docklands 14.50 2,843 5,100 6.28

Jul-13 Gisborne Central Shopping Centre 10.80 3,696 2,922 7.76*

Sep-13 206 Bourke St, Melbourne 105.00 11,844 8,865 7.74

Oct-13 Lynbrook Village 30.00 6,811 4,405 8.00

Oct-13 Rosebud Plaza 100.00 23,847 4,193 7.80

Nov-13 Bright Village** 9.00 3,257 2,763 na

Dec-13 Bendigo Marketplace 165.00 23,919 6,898 na

Source: Savills Research na = not currently available *equated yield **part of port folio sale, approx sale price based on book value where available

Select Bulky Goods Sales


Jun-13 Bunnings, Warragul 4.63 5,094 909 8.54

Jul-13 Home HQ, Nunawading 48.00 22,871 2,099 9.79*

Oct-13 House & Home, Moorabbin 31.50 13,883 2,269 na

Dec-13 Bunnings, Torquay 11.20 6,740 1,662 6.52

Source: Savills Research na = not currently available *equated yield VP = vacant possession

Select Freestanding Sales


Mar-13 Tasman, 1358 North Rd, Oakleigh South 4.90 1,566 3,129 na

Apr-13 IGA, 525 Stud Rd, Wantirna South 3.65 897 4,069 7.37

Apr-13 KFC, 157-159 Nepean Hwy, Mentone 3.51 258 13,585 6.48

May-13 Ritchies, 2 Eramosa Rd West, Somerville 2.56 na na 7.35

May-13 Midas, 267 Whitehorse Rd, Balwyn 2.85 na na 4.30

Jun-13 KFC, 1255 Frankston Dandenong Rd, Carrum Downs

3.82 300 12,733 7.17

Nov-13 Dan Murphy, Warrnambool** 5.70 4,534 1,257 na

Nov-13 Woolworths, Maffra** 9.30 2,323 4,003 na

Nov-13 Big W, Mildura** 23.00 9,160 2,511 na

Source: Savills Research na = not currently available **part of port folio sale, approx sale price based on book value where available

Select Development Site Sales

Date Property Price ($m) Area (sq m) $/sq m

Feb-13 850 Plenty Rd, Reservoir 18.70 42,450 441

Jun-13 565-567 Church St, Richmond 2.05 264 7,765



This information is general information only and is subject to change without notice. No representations or warranties of any nature whatsoever are given, intended or implied. Savills will not be liable for any omissions or errors. Savills will not be liable, including for negligence, for any direct, indirect, special, incidental or consequential losses or damages arising out of our in any way connected with use of any of this information. This information does not form part of or constitute an offer or contract. You should rely on your own enquiries about the accuracy of any information or materials. All images are only for illustrative purposes. This information must not be copied, reproduced or distributed without the prior written consent of Savills. Savills 2014


Current Retail Construction

Major Centres Currently Under Construction

Centre Suburb Type New Extension Refurb Completion

Barkly Square Stage 2 Brunswick Sub Regional 17,462 complete

Woolworths Shopping Centre Tarneit Neighbourhood 6,000 complete

Masters Keysborough Bulky Goods 13,000 complete

Masters Williams Landing Bulky Goods 13,500 complete

Epping Plaza Epping Major Regional 5,000 complete

Woodgrove Shopping Centre Melton Sub Regional 25,000 complete

Craigieburn Town Centre Craigieburn Sub Regional 55,000 complete

Pakenham Lifestyle Centre Pakenham Bulky Goods 31,673 complete

Collins Square, Collins Street Docklands City Centre 10,000 staged

Coburg Hill Neighbourhood Hub Coburg Neighbourhood 4,500 staged

The Emporium Melbourne City Centre 47,000 Mar-14

IKEA Campbellfield Campbellfield Bulky Goods 41,000 Mar-14

Brimbank Central Deer Park Sub Regional na May-14

The Strand Arcade Melbourne City Centre 9,498 May-14

The William Melbourne City Centre 2,000 Jun-14

The Mentone Centre Mentone Bulky Goods 29,860 Jun-14

Central Shopping Centre South Morang Neighbourhood 4,600 Dec-14

Millers Road Homemaker Centre Altona Bulky Goods 24,460 Dec-14

The Galleria Melbourne City Centre 5,600 Mar-15

567 Collins Street (ground floor) Melbourne City Centre 2,000 Jun-15

Eastland Shopping Centre Ringwood Regional 45,000 Feb-16

Smith Street Mixed Use Dev (Coles) Collingwood Supermarket 4,000 Feb-16



Savills Australian Capital Territory

Research Valuations Sales & Leasing Project Management Simon Hemphill +61 (0) 2 8215 8892 [email protected]

Phil Harding +61 (0) 2 6221 8293 [email protected]

Theo Dimarhos+61 (0) 2 6221 8275 [email protected]

Mitchell Thomas+61 (0) 2 6221 8294 [email protected]

Savills New South Wales

Research Valuations Retail Sales Metro & Regional Sales Simon Hemphill +61 (0) 2 8215 8892 [email protected]

Andrew Johnston +61 (0) 2 8215 8853 [email protected]

Simon Fenn+61 (0) 2 8215 8888 [email protected]

Robert Lowe +61 (0) 2 8215 8841 [email protected]

Retail Leasing Retail Management Project Management Leighton Hunziker +61 (0) 2 8215 8838 [email protected]

Thomas Brown +61 (0) 2 8215 8893 [email protected]

David Nicholas+61 (0) 2 8913 4813 [email protected]

Savills Queensland

Research Valuations Retail Sales Retail Leasing Paul Day +61 (0) 7 3002 8860 [email protected]

Lawrence Devine +61 (0) 7 3002 8822 [email protected]

Peter Tyson+61 (0) 7 3002 8807 [email protected]

Garry McDowall+61 (0) 7 3002 8920 [email protected]

Retail Management Sunshine Coast Gold Coast Project Management Shane Twomey +61 (0) 7 3002 8933 [email protected]

Dustin Welch +61 (0) 7 5313 7519 [email protected]

Kevin Carmody+61 (0) 7 5592 5199 [email protected]

Gary Finnegan+61 (0) 7 3018 6703 [email protected]

Savills South Australia

Research Valuations Retail Sales & Leasing City & Metropolitan Sales Hamish Johnston +61 (0) 8 8237 5029 [email protected]

Alastair Johnston +61 (0) 8 8237 5041 [email protected]

Peter Isaksson+61 (0) 8 8237 5020 [email protected]

Steve Bobridge+61 (0) 8 8237 5015 [email protected]

Retail Management Project Management Jeffrey Klaebe +61 (0) 8 8237 5018 [email protected]

Steve Christodoulou+61 (0) 8 8237 5004 [email protected]

Savills Victoria

Research Valuations Capital Transactions Investment Sales Glenn Lampard +61 (0) 3 8686 8034 [email protected]

Stuart Fox +61 (0) 3 8686 8029 [email protected]

Dominic Long+61 (0) 3 8686 8031 [email protected]

Pat De Maria +61 (0) 3 8686 8080 [email protected]

City Sales Retail Leasing Asset Management Project Management Clinton Baxter +61 (0) 3 8686 8021 [email protected]

Michael Di Carlo +61 (0) 3 8686 8071 [email protected]

Egan Smith+61 (0) 3 8686 8042 [email protected]

Chris Adam +61 (0) 3 9445 6841 [email protected]

Savills Western Australia

Research Valuations Capital Transactions City & Metropolitan Sales Gemma Alexander +61 (0) 8 9488 4140 [email protected]

Mark Foster-Key +61 (0) 8 9488 4145 [email protected]

Miles Rowe+61 (0)8 9488 4116 [email protected]

Chas Moore +61 (0) 8 9488 4155 [email protected]

Retail Leasing Retail Management Project Management Chris Ireland +61 (0) 8 9488 4179 [email protected]

Mark Townsend +61 (0) 8 9488 4114 [email protected]

Graham Nash+61 (0) 8 6271 0306 [email protected]

savillsresearch quarter times melbourne retail q4 2013

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