Industry Analysis & Industry Trends
Retail property operators are battling many of the same enemies that the retail sector faces. Poor consumer confidence, competition from online retailers and an oversupply of retail property are among the key challenges. The retail property market showed signs of improvement over 2009-10 after a disastrous period following the global financial crisis. However, retail conditions faltered during 2010-11 as global economic uncertainty weighed on consumer spending. While vacancy rates have improved over the past five years, this has largely been due to the use of leasing incentives and low rental prices. IBISWorld expects that revenue for the Retail Property Operators industry will grow at a compound annual rate of 4.6% over the five years through 2014-15, to reach $18.5 billion... purchase to read more
Industry Report - Industry Key Buyers Chapter
IBISWorld estimates that the four largest operators account for less than 40.0% of industry revenue. The remainder of the Retail Property Operators industry consists of individual investors, property syndicates and smaller property groups and trusts. This indicates that the market is not dominated by any individual company, but is driven by many different players.
Concentration had been slowly increasing over the 2000s. However, the advent of the global financial crisis affected the market. The market share of the four largest players fell significantly, before rebounding as the economy stabilised. Concentration is expected to grow over the next five years as more retailers look to take risky property assets off their balance sheets in favour of renting... purchase to read more