Herron Todd White recently released their July Month In Review in which Commercial Director Alistair Weir provided an analysis of the current state of retail property. Read on for CapStack's five key takeaways:
1. Australia's rapid population growth (650,000+ in 2023) is creating significant demand for retail space, with a potential need for 585,000 sqm of new retail accommodation annually.
2. Current retail development is at record lows, reaching only 20% of the long-term average, leading to a potential significant shortfall in retail space across the country.
3. Development challenges in urban areas, including planning difficulties and rising construction costs, are pushing new retail projects towards expansion and densification of existing sites or new developments in outer areas.
4. The undersupply of retail space is likely to benefit existing property owners through increased trade, higher leasing demand, and potentially rising rental rates and capital values.
5. Despite current economic headwinds and weak retail trade growth, the medium to long-term outlook for retail property owners remains strong, supported by population growth and the enduring appeal of in-person shopping experiences.
If you are considering a retail focused commercial property investment reach out to the team at CapStack.
Given the complex market dynamics and potential opportunities in the sector, it makes sense to partner with expert commercial mortgage brokers such as CapStack who can source and structure optimal financing options. CapStack can help navigate the challenges of acquiring or refinancing retail properties in this evolving landscape.
Make an informed decision. Let's talk.
[Full report available here: https://htw.com.au/national-retail-overview-6/]
How can CapStack help?
An experienced business finance broker such as those at CapStack can help companies in the manufacturing, wholesale trade, and distribution sectors achieve their goals in 2024:
1. Securing Growth Capital: A business finance broker can help companies secure the necessary capital to invest in technology, equipment, and other resources needed to increase production and meet growing demand. This includes facilitating access to loans, lines of credit, and other financing options tailored to the specific needs of the business.
2. Optimising Cash Flow: Brokers can assist businesses in managing cash flow more effectively by arranging financing solutions like invoice factoring or supply chain financing. These solutions can provide immediate liquidity, allowing companies to manage operational expenses and invest in growth opportunities without cash flow constraints.
3. Navigating Cost Challenges: With rising costs due to energy prices, inflation, and interest rates, a finance broker can help businesses find cost-effective financing solutions. This includes refinancing existing debt at lower interest rates or securing funding with favourable terms that mitigate the impact of these cost pressures.
4. Facilitating Technology and AI Investments: To enhance productivity and competitiveness, businesses need to invest in advanced technologies such as AI and machine learning. A finance broker can identify and arrange funding options that support these strategic investments, ensuring that businesses can implement the latest innovations to improve efficiency and supply chain management.
5. Supporting Sustainability Initiatives: Many businesses are advancing their sustainability efforts, such as adopting renewable energy. A finance broker can provide access to green financing options, including loans and grants specifically designed for sustainability projects. This can help companies reduce their environmental impact while potentially lowering operational costs in the long term.
6. Financing Commercial Property Purchases: For businesses looking to expand their operations or establish new facilities, a finance broker can assist in securing commercial property loans. These brokers can navigate the complex landscape of commercial real estate financing, helping businesses acquire the necessary properties to support their growth and operational needs.
By leveraging the expertise and resources of a business finance broker, companies in the manufacturing, wholesale trade, and distribution sectors can effectively address financial challenges, capitalise on growth opportunities, and achieve their strategic goals in 2024 and beyond.
Looking to expand your property footprint as a business owner, property investor or owner-occupier?
Let's talk. The CapStack Team is ready for you.
Planning a business expansion or acquisition or property acquisition in 2024? Let's talk commercial finance. CapStack is ready for you.
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Why CapStack?
When it comes to securing the right financing for your business or commercial property acquisitions and projects in Australia, CapStack is the partner you can trust. With unparalleled expertise, a vast network of lenders, personalised service, and data-backed insights, we are committed to your success. Get in touch with CapStack today and unlock the full potential of your commercial ventures with our expert property finance services.
CapStack can assist with bank, non-bank, or private financing. Start here to connect with us and send through some basic information to get the ball rolling or email us directly. Our lenders are Australia-wide and ready to fund investments acquisitions and development projects. CapStack help's developers and investors fill their capital stack by providing access to the capital puzzle piece they are missing. CapStack works directly with developers and investors who need access to capital markets.
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