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Retailer expansion good news for leasing on the Gold Coast

By Greg Bell

There have already been some major property moves planned and undertaken in 2016, and more are set to come.

Retailers are planning to move into the Australian market throughout the year and with Deloitte reporting that 39 of the biggest 250 retail operations from around the world are already in the country, the door is open for growth.

Why choose the Gold Coast?

The region is set to host the Commonwealth Games in 2018, and both the commercial and residential property sectors are flourishing. In fact according to CoreLogic, for the December 2015 quarter residential rents on the Gold Coast increased by 3.9 per cent showing a strong increase in the market overall.

Property moguls are also setting their sights on the Sunshine State's beautiful south east, with the Reed Property Group making waves around country to free up some space for Gold Coast acquisitions.

Businesses are beginning to note that the Gold Coast is becoming a strongly contested market for growth, and that is pushing demand for commercial property higher and higher.

David White, a Deloitte partner and national leader of the company's Retail, Wholesale and Distribution group believes that as Australia is still not completely taken over by international brands, there is room for existing business to expand.

"The Australian market remains relatively unsaturated by the world's largest retail brands compared to the US and European markets," he stated.

The Deloitte Global Powers of Retailing 2016 report found that of the 39 largest companies in the world operating in Australia, only 5 per cent are based locally. Almost half are from the US and 13 per cent are from France, who sit second on the list.

Companies from all over the world see Australia as a destination to take ground in.

What that means for commercial property

As international retailers look towards Australia for their expansion plans, owners of commercial property can benefit.

Businesses will be needing a base for their operations in the country, and retail and office leasing on the Gold Coast can capitalise on this opportunity. Prime locations will be fiercely competed for, as companies attempt to get the best foothold for successful growth in Australia.

China will also be looking at moving into the area, after the China-Australia Free Trade Agreement was signed in 2015. China currently has no retailers in the top 250 operating in Australia even though they have nine on the list. However the second largest online retailer in the world, JD.com, opened a dedicated Australian site last year and they operate from China, which proves that the country is seen as the place to be.

Mr Price, a retailer from South Africa, brands itself as MRP in Australia and opened two stores in Melbourne in 2015. The fashion icon has over 1,000 stores in South Africa and it is important to note that it saw Australia as the first place in the world for which expansion was worthwhile.

A major retailer in the US on the other hand, Williams-Sonoma, planted itself in Australia during 2013 and has now amassed 19 stores across the country. Companies that have already seen the opportunities that the Australian market offers are showing strong growth.

Taking advantage

For the retailers that are not in Australia yet, the Gold Coast is going to look like a very attractive location from which to lease commercial property. Not only will the Commonwealth Games provide a boost to the region financially, but the crowds that it could draw are an exciting prospect.

Retailers that have not yet expanded into the region might already have plans in the works, and international organisations will be scouring Australia for the best opportunity as they move into the country. Talk to the specialists at Ray White Surfers Paradise to find out what leasing options they have for your commercial property.

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