Auckland retail spend ended on a high note in December recording 4% growth over the past year. All industries experienced a lift in retail spend, the largest contribution came from supermarket and grocery stores followed by food and beverage services.
There has been a rise in international retailers signing up for retail space in New Zealand over the past year, spurred on by new opportunities created from tenant relocations on Queen Street and new developments like Westfield Newmarket and Precinct Properties’ Commercial Bay.
Strong catchment fundamentals and street position remain paramount for retailer success. CBD was the only strip retail precinct to experience a drop-in vacancy rate.
Westfield Newmarket will add over 80,000sqm to Auckland’s total retail supply in late 2019 when it is expected to open with a host of new retailers. The development represents 48% of total supply currently under construction in Auckland’s main retail precincts.
MSCI’s Property Index for 4Q2018 total returns showed an annual increase of 140 basis points in the bulk retail sector, now at 10.9%. The total return for shopping centres was at 3.5%