THE growth of retail space in suburban Perth shows little negative signs of the global financial meltdown, as shopping centre operators and traders hold their collective breath that public spending in the approach to Christmas will be at, or near, last ye
THE growth of retail space in suburban Perth shows little negative signs of the global financial meltdown, as shopping centre operators and traders hold their collective breath that public spending in the approach to Christmas will be at, or near, last year's record levels.
Based on data provided by Jones Lang LaSalle, a total of over 156,000 square metres of extra shopping centre retail space will be available in the suburbs by the first quarter of 2011.
However, plans for an additional 17,000sq m of retail space at Kingsway City at Madeley, were knocked back last month by the State Administrative Tribunal (see page 17)
The double whammy of higher rents and lower retail spending in the wake of the global downturn looks unlikely to hit this year.
Ian Armstrong, chief executive of Cockburn Gateway operator Perron Group, said spending and sales had held up well in the current difficult climate and any impact on rentals would be slow to take effect because of the relatively long-term nature of lease agreements.
"Since the beginning of September there has been a slight drop-off in patronage and sales, but this is within just one per cent," he said.
Mr Armstrong said customer support for the stage two expansion at Cockburn Gateway, opened 12 months ago, had been very strong. A further expansion was under consideration.
The biggest suburban shopping centre expansion is at ING Real Estate's Lakeside Joondalup, where an extra 29,000sqm of retail space (to 71,000sqm) will place it second only to Morley's Galleria in WA in terms of size.
The $200 million-plus extensions will provide for 100 new specialty stores, along with a Supa IGA and Big W, due to open on December 2.
At Wanneroo Central, the $40 million stage one extension will lift retail space from about 8,000sqm to 20,000sqm.
Stage 1A opened in August with a new Coles supermarket and 17 specialty stores and stage 1B, due to open in September 2009, will provide for a Kmart, Best and Less, IGA supermarket and 20 more specialty stores.
Wanneroo Central asset manager Bart Boys said the credit crunch had posed difficulties for some franchisees in obtaining finance, but this problem appeared to have eased recently.
Work on stage two, to provide an additional 8,000sq m, is due to start in 2010.
Extensions at ING's Armadale Shopping City were completed in September, lifting floor space by 19,000sqm at a cost of $54 million.
Colonial First State's Rockingham City will have an extra 5,000sq m of retail space by Christmas with another 11,000sqm by April 2009.
CFS regional manager development WA Seamus Van Der Westhuizen said the current redevelopment would lift retail space to 62,400sqm.
Two new neighbourhood centres, at Carramar and Bertram, are scheduled to open in the next 12 months.
Peet Commercial's $10 million Carramar Village, to open on March 9 2009, will have 5,000sqm of retail space, two-thirds of which will be taken by anchor tenant Woolworths.
Bertram Shopping Centre, with 3,310sqm of retail space, is expected to open in December 2009, with a 1,300sq m supermarket, most likely Supa IGA, and between 16 and 19 specialty stores.
Work will start next month and be completed by December 2009.
The first stage of the $300 million redevelopment of Claremont Arcade, Claremont Quarter, is expected to open in the first quarter of 2009.
It is part of a Multiplex/Hawaiian project to provide 79 residential apartments and 600sqm of commercial space.
The 30,000sqm retail area over two levels will have a Coles supermarket and 50 specialty stores. Stage two, to be built between 2009 and 2011, will have a new David Jones store.
Further south, the new Pinjarra Junction Shopping Centre, opened on July 1, will be extended by early 2009. Work is scheduled to start before the end of the year, lifting retail space from 5,263sqm to 6,000sqm.
Other shopping centre projects under way or planned include the $3 million Beldon Shopping Centre, the $10 million The Vale shopping centre in the Swan Valley and the $10 million Brookdale Plaza in Armadale.
