Shopping centres, office landlords positive as coronavirus rules eased
Shopping centre and office landlords were cautiously encouraged by the federal government’s blueprint for rolling back restrictions on retail trading and workplace gatherings, welcoming the prospect of an end to disrupted trading on the horizon.
Commercial property shares gained ground on the back of Scott Morrison’s timeline announced on Friday, with mall operator Vicinity Centres rising 5.2% and rival Scentre Group up 3.8%.
GPT rose 3.6%, office landlord Dexus gained 1.7% to $8.85 and logistics property giant Goodman Group rose 1.8% to $14.36.
The gains came despite ongoing battles over retail leasing terms and widespread concerns about the outlook for Australia’s economic recovery.
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Several major retailers are preparing to reopen shops from Monday, while many large businesses are now planning for a staged return of workers to offices beginning next month.
Stockland chief executive Mark Steinert welcomed the national cabinet’s three-step blueprint for the safe reopening of the economy and the restoration of jobs. “While it’s clear this crisis is far from over, these steps and guidelines give us some certainty as to what we can expect in the coming weeks and months, and will help businesses prepare for the changing conditions,” he said.
The company is one of the largest retail landlords in Australia.
Stockland shares closed steady on Friday at $2.74.
Office landlords are also confident about the prospects of reopening shortly, allowing businesses to begin operating more normally.
Dexus chief executive Darren Steinberg, who oversees the country’s largest office portfolio, said the easing of restrictions would be an important catalyst to getting the economy moving.
“As people return to their workplaces, the many small businesses that rely on the patronage of the people who work in our cities — the cafes, the dry cleaners, the couriers — will now be able to reopen,” he says.
Major players are keen to get businesses back into their offices.
“We’ve been planning for a return to the office for our staff and customers for some time, with a focus on safe and practical measures,” Steinberg says.
This article originally appeared on www.theaustralian.com.au/property.
