Shopping centres of next century to be 'mini cities'
AMP Capital Shopping Centres managing director Bryan Hynes says shopping centres of the next century will look more like mini cities.
Mr Hynes said shopping centres are still meeting places, but are used in a different manner than 20 years ago. Some people shopped, others ate and others went to the movies, he said.
"We see a shift in the Australian landscape, with more inner living and higher-density apartments, with the residents wanting a live, work and play lifestyle, which incorporates a shopping centre," Mr Hynes said.
"At Macquarie we have the university, and the 60,000-square-metre town centre, who will use the mall for leisure and entertainment."
The chief executive of commercial property at Stockland, John Schroder, said shopping centres kept reinventing themselves to reflect their community. In time, agents said, hotels and residential developments would appear in and around a mall.
According to CBRE's Australia marketview report for the second quarter of 2013, overall retail turnover growth remained soft over the 12 months to June 2013, rising by 1.1 per cent, although food retailing increased by 3.6 per cent, which outpaced non-food retail sales. Food- and convenience-based non-discretionary spending now accounts for 55 per cent of sales in the retail sector, up from 51 per cent five years ago.
The associate director of retail services at CBRE, Leif Olson, said retailers were realigning their businesses to take advantage of the upswing in food retail spending.
The senior retail research manager at CBRE, Tammy Smith, said during the second quarter neighbourhood centres dominated construction activity.
Ms Smith attributed the upswing in neighbourhood shopping centre developments to the increased food retailing turnover.
Frequently Asked Questions about this Article…
The article says shopping centres of the next century will function more like mini cities by combining retail with food, entertainment, hotels, apartments and large-scale parcel collection points — creating live-work-play precincts rather than just traditional malls.
According to AMP Capital’s Bryan Hynes and other industry leaders, modern centres are adding food and entertainment precincts, hotels, residential apartments, universities or town centres, and even parcel collection points to serve changing customer needs.
CBRE data in the article shows food retailing rose 3.6% over the 12 months to June 2013 and food- and convenience-based spending now accounts for 55% of retail sales (up from 51% five years earlier), prompting retailers to shift focus toward food and convenience offerings.
The article explains that with more inner living and higher-density apartments, residents want a live, work and play lifestyle. Centres are adapting by integrating residential developments, leisure and entertainment options and services that support local communities.
CBRE’s retail research noted that neighbourhood shopping centres dominated construction activity during the second quarter of 2013, driven in part by increased food retail turnover.
CBRE’s Leif Olson says retailers are realigning their businesses to take advantage of the upswing in food retail spending, refocusing space and offerings toward food and convenience formats that now make up a larger share of sales.
The article quotes AMP Capital Shopping Centres managing director Bryan Hynes, Stockland’s commercial property chief John Schroder, and CBRE representatives Leif Olson and Tammy Smith. It also references Macquarie’s 60,000-square-metre town centre example.
The article suggests a structural shift: centres are reinventing themselves as mixed-use hubs focused on food, convenience and community services. Everyday investors should be aware that neighbourhood and mixed‑use developments and a stronger food retail mix are key trends shaping retail property performance.
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