RESEARCH
OFFSHORE investors and private players driven by attractive asset pricing will dominate Australian retail real estate...
According to JLL’s Retail Investment Outlook 2023, some $6.6 billion worth of retail assets were withdrawn from...
“We have seen some of these assets return to the market in 2023 reflecting motivated selling as vendors aim to...
Sam Hatcher, JLL executive director, head of retail investments, said that from a valuation and pricing perspective, the retail sector...
“The investment market remained highly divergent as domestic and some offshore capital sources continued to selectively seek...
JLL expects to see “strong engagement from offshore investors as they continue to build a case for investment in...
“Offshore groups, which have re-focussed on convenience retail and sub-regional centres in recent years, will...
“After slowing the pace of acquisitions in the last few years, offshore investors have been undertaking more market and...
Offshore investors were slight net buyers of about $171 million in 2022, but still accounted for 15% of total sales volumes....
Private capital re-emerged in 2022, consistent with historical trends during volatile periods such as the global financial crisis, and...
“Private investors are likely to account for a significant proportion of sales volumes in 2023, capitalising on...
Given funding challenges, AREITs are likely to remain relatively inactive throughout 2023 in terms of acquisitions and will...
“Despite a drop off in activity in 2022, some AREITs stated an interest in asset recycling in their December 2022 results...
“We see the divestment by AREITs driving the pipeline of opportunities for other sources of capital in 2023.”
Retail values to be resilient
The latest numbers from The Data App show deals have fallen by 41.2% annually in the three months to April,...
JLL expects retail will be the most resilient asset class from a re-pricing perspective, given the reset in income and values in...
“Asset re-pricing remains a key theme in 2023 as the yield decompression cycle continues across sectors. More evidence of...
According to JLL, neighbourhood centre yields have softened by 66 basis points from the low point reached in...
“While some owners may look to selectively divest assets to reduce debt, stabilisation in the cash rate is likely to...
“Nevertheless, asset pricing is still recalibrating to the new cost of debt levels and there will be a lag before an...
Retail spending in December 2022 was 26% above pre-pandemic levels with retail trade beating market expectations for ...
“The well-flagged discretionary spending slowdown should be considered in the context of an elevated starting point and...