Centre of attention: Rising demand from overseas investors has raised industry revenue

Strong investor demand for retail property has boosted capital values over the past five years, driving revenue growth in the Retail Property Operators industry. However, the retail sector has faced some significant challenges over the period that have dampened growth for retail property operators. Competition from online retailers and an oversupply of retail property have been among the key challenges facing the industry over the past five years. While vacancy rates have improved over the past five years, this trend is partly due to an increase in long-term leasing agreements.Industry revenue is expected to increase at an annualised 12.2% over the five years through 2018-19, to $33.8 billion. This includes an anticipated rise of 1.3%...read more.

Industry Statistics & Market Size
Revenue
$34bn
Annual Growth 14-19
12.2%
Forecast Growth 19-24
Profit
Employment
55,675
Businesses
50,917
Market Share of Companies

Industry Threats & Opportunities

  • Rising demand from overseas investors has contributed to the industry's expansion
  • Online shopping’s rapid growth has constrained demand for physical retail locations
  • Increased competition between industry operators will likely constrain rent increases
  • Industry Report - Industry Products Chapter

    Retail property is a diverse asset class. Retail premises can be located in CBD, regional, neighbourhood or sub-regional areas. Each segment is based on annual sales volumes, which can fluctuate in line with inflows of new retail operators and foreign investment. Depending on the design of a retail premises, space for every type of retail service ranging from hardware retailers to supermarkets can be offered.Regional retail premisesRegional retail premises represent the industry's largest segment and are subject to the second largest gross face rent. Regional premises include large-scale shopping centres that may include one or more supermarkets, one full-line department store and as many as 100 specialty stores. Reg...purchase to read more.

    Additional Insights for the Retail Property Operators Industry

    IBISWorld has determined the most important Key Success Factors for the Retail Property Operators are:

  • Financial structure of the company
  • Management of a high quality assets portfolio
  • Ability to effectively communicate and negotiate
  • IBISWorld analysts also discuss how external factors such as Demand from retail trade and Consumer sentiment index in the Retail Property Operators industry impact industry performance..

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    What's in this report

    What is the Retail Property Operators Industry?

    Industry operators primarily engage in leasing retail property.

    Industry Products
  • Regional retail premises
  • Sub-regional retail premises
  • CBD retail premises
  • Neighbourhood retail premises
  • Large format retail premises
  • Strip retail premises
  • Standalone retail premises
  • Other retail premises
  • Industry Activities
  • Retail property renting or leasing (as owner or leaseholder)
  • Retail building renting or leasing (as owner or leaseholder)
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from retail trade
  • Consumer sentiment index
  • Business confidence index
  • Cash rate
  • Demand from online shopping

  • Current Performance
  • Investor activity
  • Retail sector woes
  • Location is everything
  • Foreign retail influx
  • Chart: Revenue Growth

  • Industry Outlook
  • Supply
  • Retail conditions
  • Table: Retail Property Operators Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Retail Property Operators Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Accommodation and Food Services
  • Consumer Goods Retailing
  • Finance
  • Supermarkets and Grocery Stores

  • Key Selling Industries
  • Air Conditioning and Heating Services
  • Commercial Cleaning Services
  • Electrical Services
  • Painting and Decorating Services
  • Plumbing Services
  • Real Estate Services

  • Products & Services
  • Regional retail premises
  • Strip retail premises
  • Sub-regional retail premises
  • Neighbourhood retail premises
  • CBD retail premises
  • Large format retail premises
  • Standalone retail premises
  • Other retail premises
  • Chart: Retail Property Operators Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Food retailers
  • Consumer goods retailers
  • Food-service establishments
  • Heavy-duty product retailers
  • Other retailers
  • Household goods retailers
  • Hospitality venues
  • Chart: Major Market Segmentation for the Retail Property Operators Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Other Costs
  • Property management and maintenance
  • Chart: Cost Structure Benchmarking – Sector vs Retail Property Operators

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Retail Property Operators Industry

  • Industry Globalization
    Scentre Group,
  • Table: Scentre Group - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Retail Property Operators Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Retail Property Operators Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    A-Reit
  • Stands for Australian real estate investment trust. A trust, which is usually listed on the ASX, holds a portfolio of real estate, allowing investors to buy units in the trust.
  • Anchor Tenant
  • A retail tenant that brings business to a shopping centre. They are typically the largest and most popular store in the centre.
  • Fast Fashion
  • Mass produced clothing produced quickly to meet latest trends, then sold cheaply at multi-national retail stores.
  • Vacancy Rate
  • The amount of space unoccupied as a percentage of total available space.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Retail Property Operators market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
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    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Retail Property Operators:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Retail Property Operators market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Retail Property Operators, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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