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. The retail property market has been regaining the ground lost after a disastrous period during the global financial crisis. 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 has largely been due to the use of leasing incentives and low rental prices.
Industry revenue is forecast to grow at an annualised 7.0%... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
Industry growth is typically correlated to underlying economic growth. As the economy prospers, high consumer confidence results in demand for retail goods, which drives demand for retail space. When the economy is performing poorly, disposable income drops and people favour saving, reducing demand for retail goods and retail space.
Industry value added, a measure of an industry's contribution to the wider economy, is forecast to grow at an annualised 6.7% over the 10 years through 2020-21. This is an outperformance of the wider economy, with GDP forecast to grow at an annualised 2.6% over the same period. Typically, IVA growth that outstrips GDP growth is indicative of a growing industry, which is expanding its share of the economy... purchase to read more