Squeeze on Sydney retail space

Sydney is fast running out of retail space and has the nation’s smallest amount of floor space per resident, new research reveals.

The Colliers research also shows Sydney’s Pitt St Mall is the 9^th most expensive shopping strip in the world when it comes to retail rents.

Sydney has 18.5sq m of retail floor space per resident, compared with Adelaide’s 47.2sq m.

Colliers International Head of Retail Michael Bate said Sydney was grossly undersupplied with retail space.

“Our research has shown that around 65,000sq m of new retail space is planned for the city’s heart,” he said.

“The CBD retail landscape has undergone much needed change in recent years with the development of Westfield Sydney, along with refurbishments of major centres including the Mid City Centre.

“However, this transformation is not over yet, with major development planned along George Street, within Martin Place and at other key sites around the city including the MLC Centre.”

 Source: id Consulting, Deloitte Access Economics, Colliers International

Mr Bate said increasing residential development and a wave of international retailers like Zara, Topshop, Gap and Williams Sonoma were helping drive the transformation of Australia’s CBD retail spaces.

“With the development of so much space in the Sydney CBD, don’t be surprised if you see another wave of international brands on our doorstep, particularly a whole new range of luxury brands who are finding Australia an increasingly attractive market,” he said.

Colliers International Managing Director of Residential Peter Chittenden said more than 4900 new residential apartments are in the works in Sydney’s CBD.

“Such an influx of new residents drives the demand for more cafes, bars and restaurants to support the daily needs of these people, who are unlikely to travel to the suburbs for their retail fix,” Mr Chittenden said.