Retail rentals taking strain

Posted On Monday, 17 September 2001 03:01 Published by
Rate this item
(0 votes)
There is still no respite for shop-owners. The sluggish growth in retail sales (a proxy for demand for retail space) for the last few months does not bode well for retail rentals in the shorter term.

There is still no respite for shop-owners. The sluggish growth in retail sales (a proxy for demand for retail space) for the last few months does not bode well for retail rentals in the shorter term.

And South Africa's consumer confidence index, already battered, has taken another beating with the release of the Bureau of Economic Research's latest figures, which shows the consumer confidence index for the second quarter of 2001 to be at a relatively low level yet again.

Attendees at the annual Rode conference in Cape Town and Johannesburg heard this month that since the end of 1998, regional shopping centres’ rentals have put in the best relative performance, although they have moved sideways since the third quarter of 2000.

Rode CEO Erwin Rode said at the conference that rentals for community shopping centres started accelerating from a low base from the beginning of 2000 and showed higher growth than regional and neighbourhood shopping centres for the year to quarter 2001:2.

Nominal rentals for neighbourhood shopping centres are more or less on the same levels as in the beginning of 1997.

Nationally, street-front shops in the CBDs have shown a slight upward trend in nominal rentals over the past year. 'This is worth mentioning if we take the ongoing decay of the CBDs into consideration, or can it be that the city improvement districts (CIDs) are starting to pay off? Of course, a slight increase in nominal terms still translates into a decline in real terms,' he said.


Publisher: Rode
Source: Rode

Please publish modules in offcanvas position.