Australian landlords under pressure
The Age published an article titled ‘Vacant space like a cancer in malls’, commenting on Macquarie Bank’s list of retailers winding back their store commitments. The list translates into nearly 350,000 square metres in vacancy, roughly equivalent to 1.5 Chadstone centres. A number of large retailers have also announced their intention to exit leases that have become too expensive. In the past, we have commented repetitively about rents and rent increases well in excess of CPI being unrealistic. It looks like finally landlords may get the message and will start questioning the value of their retail space.