Adelaide is home to a thriving commercial property market, with the retail sector presenting fascinating opportunities. From historic arcades along Rundle Mall to Norwood’s trendy fashion boutiques, there’s no shortage of places for savvy investors to secure an incredible property in Adelaide’s bustling shopping districts.
For those looking for outstanding growth, getting to know Adelaide’s retail scene is a wise choice. Here, we delve into the increasing demand for retail spaces, emerging consumer trends and how clear-minded investors can benefit from exceptional capital growth by securing an ideal retail commercial property.
Demand for retail spaces
The retail shopping dynamic has undoubtedly changed since the rise of online shopping, but that doesn’t mean people still don’t love to explore their local high street. In fact, demand for retail spaces in Adelaide has hit an impressive peak, with vacancy rates along Adelaide’s leading retail high streets falling to 6.9%.
As the lowest vacancy recorded since 2016, a healthy mix of hospitality and fashion operators have secured retail spaces, leading to numerous neighbourhoods becoming increasingly vibrant. With the city’s population rapidly growing, now could be the perfect time to invest in retail commercial property.
The emerging consumer shopping trends
Undoubtedly, the pandemic caused a seismic shift in how people shop in Australia. Between lockdowns and struggling businesses, most consumers turned their attention online. However, Australians are quickly rediscovering their love of the retail shopping scene, with people seeking to explore the city and products they can see and touch.
As retailers adjust to new consumer habits, one trend noticed by many retailers is how many people prefer smaller, more boutique shopping strips over large-scale shopping centres. Meanwhile, those featuring a lively combination of retail stores and hospitality venues offer a dynamic experience that appeals to modern retail shoppers.
How retail property yields superior growth
While no investment in property is guaranteed, Adelaide’s retail commercial property sector has achieved excellent growth. By investing in a property in the perfect location, you can expect to achieve a higher yield, thanks to ongoing rental growth, capital growth and longer leases that give owners strong confidence in their income.
As the post-COVID picture becomes apparent in Australia, predicting where the retail market is headed isn’t quite so difficult, making it a good time to get involved. Although it can seem daunting for first timers, the upside presented by retail commercial property investment can be enormous for diligent investors.
Speak to the experts
Get in touch with the experts at InStyle Property Management to get up-to-date information about the property market. Our highly experienced team can help manage your commercial investments to achieve your goals.