Industry Analysis & Industry Trends
Strong investor appetites for retail property and its relatively high yields have contributed to an increase in capital values. This trend has been driving growth in the Retail Property Operators industry over the past five years. However, retail property operators are battling many of the same enemies that the retail sector faces. Fluctuating consumer confidence, competition from online retailers and an oversupply of retail property are among the key challenges. While vacancy rates have improved over the past five years, this is expected to have been due to the increasing use of long-term leasing agreements.
Industry revenue is expected to grow at an annualised 11.1% over the five years through 2016-17, to reach $24.4 billion... purchase to read more
Industry Report - Starting a New Business Chapter
The Retail Property Operators industry has several barriers that can prevent new companies from entering the industry. Entry costs are the largest barrier to new property operators. In the retail property market, entry costs include the costs associated with financing and acquiring property assets and the initial marketing, development, advertising and research expenses. Direct investment in prime property assets requires significant financial resources and this often prevents new entrants from establishing themselves in the market. For this reason, many of the industry's largest players are listed property trusts that raise funds through public equity.
Zoning regulations can also be a barrier to entry... purchase to read more