Refurbishments
Furthermore,
with
limited
“green-fields”
opportunities, shopping centre owners will look
to their existing centres to unlock value. Therefore,
refurbishments, expansions and redevelopments
will mean significant investment by owners with a
number of these already in progress and expected to
come on stream towards the latter part of 2015 and
into 2016. Landlords are seeking to re-tenant these
centres to adapt to changes in demographics and
spending patterns, as well as to reposition the centres
for the next 10-15 years.
Value trend
Value/off price retail will also continue to grow in
2015. We are seeing more entrants in this sector and
with consumers feeling the effects of rising costs they
are seeking to stretch their budgets by shopping at
these value chains. We should see more outlet stores
opening in various locations.
International retailers
In general, South Africa and Africa remain an
attractive proposition for international retailers,
especially in light of the muted growth coming out of
European markets. These retailers see the tremendous
opportunity on the continent and are looking to set
www.reimag.co.za
up their base in South Africa. Given its advanced
retail industry, South Africa will be the platform
for many international retailers to then expand
northwards into potentially lucrative markets. Most
new entrants are in the fashion sector, and are only
looking at regional centres (over 50,000sqm). There
have been a few cases where international entrants
have taken space in busy, small regional centres.
Larger fashion entrants will only place a handful of
stores in the major metropolitan areas and will not,
at this stage, venture into outlying areas.
Many South African retailers are looking at
partnering with international retail brands to expand
their offering and diversity either in-store or in
standalone stores.
Exclusivity clauses
Overall, the retail sector should see further progress
on the part of the Competition Commission with
regards to exclusivity clauses in national grocery
chains leases. Whatever the outcome, this could spell
some significant changes in the transactions between
landlords and certain chains and this will depend on
whether one is a landlord or a grocery chain.
RESOURCES
Broll Strategic Retail Leasing
Commercial Handbook 2016
29