Shopping Centre

Mall vacancies have hit a 20-year high as eased coronavirus restrictions and increased foot traffic fail to alleviate the pain felt by many retailers, latest figures from JLL show.

The coronavirus has slugged major regional malls while listed property groups with an exposure to Victoria have also been hit in recent days as lockdowns return.

The lockdown of Melbourne that has left major firms unsure when they will return to their offices and CBD retailers shuttered is hitting listed property developers and investors.

The future of shopping centres is again in the spotlight as the coronavirus pandemic flares in parts of Melbourne, but large shopping centre owners are not putting the crisis to waste.

Australian department store David Jones is poised to launch the sales process for its $1bn property portfolio, with promotional material being sent out to the market next week.

Shoppers appear to be flocking back to stores, with the owner of Westfield malls in Australia saying customer visits are getting close to the levels of a year ago, but Melbourne’s coronavirus outbreak will force some retailers to wind back their operations.

Shoppers are heading back into malls, but not at the same rate as before the coronavirus struck and smaller convenience-style shops are beating out larger regional centres that were traditionally at the top of the property tree.

A Woolworths-anchored mall in Melbourne has been snapped up by a Sydney investor for a cool $21.3 million – a deal that shows investor appetite remains strong, according to industry experts.

The shopping centre industry believes it can come through its current rough patch with investors backing the $1.4bn equity raising by Vicinity Centres amid concerns there is more pain ahead for shopping centre landlords.