Feature:
Property Trends
KEY RETAIL PROPERTY
TRENDS FOR 2015
Retail property has made a strong positive contribution to Africa’s growth in recent
years, with numerous new shopping malls coming to market – each ploughing
investment in the economy, creating jobs and crafting retail assets and social hubs
for their communities.
G
avin Tagg of Retail Network Services,
has helped deliver many successful
shopping centre developments and
believes, despite weaker economic
fundamentals, there are still exciting
new opportunities for shopping
centres in 2015.
Tagg’s prognosis for retail property in
2015 highlights five dominant trends:
A cautious approach is needed by retailers and retail
developers in the year ahead, advises Tagg. “It’s
essential to have sound retail development basics in
place to ensure the success of a new shopping centre
in this flat-growth, rising-interest economy,” he notes.
Caution
With high stakes, a proven track record of delivery
is essential and new retail schemes should be left to
experienced developers. “This market is unforgiving,”
cautions Tagg, who notes there are inexperienced
retail developers who are muddying the waters right
now. “It is essential to astutely assess every detail
Know-how
of a potential project: site assessment, rental levels,
tenant mix, aesthetics, finishes and more. This requires
insight that can only be gained from experience.”
There are still huge opportunities in the area of rural
retail in South Africa and Tagg is bullish about this
sector of the market. Even in these areas, outside of
South Africa’s major metropolitan nodes, developing
the right product is essential for success. “A rural retail
development must be aspirational yet affordable,”
advises Tagg. “It should also have all the fundamentals
in place to, in theory, stand up to the same tests which
would apply to a mall in an urban environment.
You can’t cut corners for rural shopping centre
development.”
Rural shopping centres
With a slew of international retailers entering the
South African market, our local consumers will
continue to reap the ultimate benefit. Tagg believes
that international retailers operating in and entering
South Africa are improving the local retail offering
considerably. This puts pressure on local retailers to be
more competitive. The new wave of retail competition
Better retail
There’s a renewed focus on customers
and “what does the consumer want?”
will become an ever more important
consideration in planning retail centres
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