The new <a href="https://www.apartments.com.au/new-apartments/yarraville-green-42-stephen-street-yarraville-vic-3013">Yarraville Green</a> development in Melbourne's inner west is showing that landscaping can be just as influential as architecture, with buyers responding strongly to the garden-first approach adopted from the outset by developer Excelon Projects and the project's design team.

Excelon appointed Six Degrees Architects and landscape architects SBLA to work collaboratively on the development, with a brief to create "a sustainable, design-led building with a focus on community."

That approach has resonated with buyers. According to Next Chapter Director Tom Hirini, who is leading the sales campaign, the landscaped communal garden has become one of the project's defining features, alongside its boutique scale and European-inspired cluster housing concept.

Local downsizers, right-sizers and established families already living in Yarraville and surrounding suburbs have accounted for the majority of purchasers.

[smartcode_project:default project_id=144913 project_image_fid=297740]

Yarraville Green will comprise 53 homes, including apartments and townhomes, arranged around the shared central garden to maximise connections to the landscaped open space. Parking has been moved underground, allowing the ground plane to be dedicated to greenery, pedestrian movement and communal spaces.

The landscape extends well beyond passive planting. Productive garden beds, a pergola, communal gathering spaces, garden sheds and a pet wash have all been integrated into the masterplan, creating spaces designed to encourage everyday interaction between residents.

[smartcode_project:default project_id=144913 project_image_fid=297741]

The interiors continue Excelon's focus on craftsmanship, incorporating bespoke elements by Melbourne artisans including leadlight detailing by Adadaz, hand-turned timber hardware by Auburn Woodturning and blown-glass lighting by Ruth Allen.

Sustainability has also been embedded throughout the project, with Yarraville Green targeting an average 7-star NatHERS energy rating through passive design principles, rooftop solar servicing common areas and rainwater harvesting for landscape irrigation.

[smartcode_project:default project_id=144913 project_image_fid=297735]

Construction continues to progress at Yarraville Green, with structural works well underway and framing works approaching completion under builder Balmain &amp; Co. The project remains on track for completion in mid-2027.

Apartments at Yarraville Green are currently priced from $625,000, while townhomes start from $1.4 million.

[smartcode_project_cta:default project_id=144913]

Joel Robinson

Garden-led design drives buyer demand at Yarraville Green

National diversified developer Fortis has officially launched Crest &amp; Walker, its latest Brisbane apartment development, with construction now underway on the 20-storey Newstead project.

Award-winning builder BINAH has commenced construction on the Bureau^Proberts-designed building, which will deliver a limited collection of 65 two and three-bedroom apartments on Kyabra Street.

[smartcode_project:default project_id=145922 project_image_fid=373556]

The project marks Fortis' fourth active residential development in Brisbane, following River House, which is nearing completion, alongside projects in New Farm and Hamilton as the national developer continues to expand its South East Queensland pipeline.

Fortis General Manager – Development Queensland Dan Boman said Crest &amp; Walker reflects the developer's long-term commitment to delivering design-led residential projects in Brisbane's established inner-city suburbs.

"We're proud to be strengthening our presence in Brisbane with Crest &amp; Walker, particularly in such a sought-after lifestyle destination as Newstead," Boman said.

"Every Fortis project is shaped by its context, and we approach each one with the respect and care it deserves.

"Our focus is always on creating places that feel connected to their neighbourhood and elevate the everyday experience for residents. Newstead continues to evolve as one of Brisbane's most sought-after urban communities, and Crest &amp; Walker reflects our ambition to contribute meaningfully to that story."

[smartcode_project:default project_id=145922 project_image_fid=373559]

Positioned between Gasworks Plaza and James Street, <a href="https://www.apartments.com.au/new-apartments/crest-walker-newstead-12-kyabra-street-newstead-qld-4006">Crest &amp; Walker</a> has been designed as a boutique residential address offering privacy and generous living spaces within one of Brisbane's most established lifestyle precincts.

The building features a contemporary brick podium softened by integrated landscaping, while the upper levels are characterised by restrained architecture and enduring materiality. Interiors have been designed to maximise natural light, acoustic performance and long-term liveability.

[smartcode_project:default project_id=145922 project_image_fid=373583]

Residences comprise spacious two and three-bedroom floorplans, with two-bedroom apartments priced from $1.55 million and three-bedroom, half-floor residences from $3.95 million.

Residents will have access to a wellness-focused rooftop featuring a swimming pool, sauna, steam room, landscaped dining spaces and outdoor lounge areas overlooking Newstead and the Brisbane CBD.

[smartcode_project:default project_id=145922 project_image_fid=373571]

Sales are being managed by Slaite Projects, with Fortis expecting strong demand from owner-occupiers seeking a high-quality, design-focused apartment in one of Brisbane's most tightly held inner-city suburbs.

Completion of Crest &amp; Walker is slated for late 2028.

[smartcode_project_cta:default project_id=145922]

Fortis expands Brisbane pipeline with launch of Crest & Walker in Newstead

The enormity of delivering a true skyscraper in Australia's new development market is often overlooked.

It has taken the best part of a decade since plans for Chevron One were first unveiled, but the 40-storey tower is now complete, with residents collecting their keys and moving into what has become one of the Gold Coast's most recognisable new landmarks.

Rising 127 metres above Chevron Island, Chevron One stands almost twice as high as any other building on the island. Its scale places it alongside the trio of towers at Jewel, arguably the last truly significant addition to the central Gold Coast skyline when they were completed around six years ago.

While there are several developments underway around a similar height to Chevron One, they are more concentrated within clusters of the highest towers in the city. The fact Chevron One sits within a developing precinct, looking back at the other high-rise developments in Surfers Paradise and Broadbeach, makes it a different proposition altogether. It will certainly become a reference point on the Gold Coast skyline.

[smartcode_project:default project_id=6515 project_image_fid=68833]

Developer Bensons Property Group is behind the 40-storey tower, which has just shy of 230 apartments, along with an exhaustive list of resident amenity spread across what is the largest development site ever assembled on Chevron Island.

The tower has been the talk of the town for years, says Ray White Projects Gold Coast agent Caitlin Rosenboom, who is selling the remaining apartments.

"People have been watching Chevron One go up for years," Rosenboom says, adding that many prospective buyers have been surprised by the scale of the views once they step inside.

"It's only when they walk through a completed apartment that they truly understand the position of the building," Rosenboom says.

"The views are jaw-dropping. Whether you're looking east over the ocean, across Surfers Paradise, along the river systems or out to the hinterland, every level offers something different but equally impressive."

[smartcode_project:default project_id=6515 project_image_fid=360215]

One of Chevron One's defining advantages is its location on the eastern side of Chevron Island on Stanhill Drive, a position which protects the views forever.

"There's only one row of houses between Chevron One and the water, and the height restrictions along the river means views from Chevron One can never be built out,"&nbsp;Rosenboom says.

While new apartment developments continue to emerge across the Gold Coast, Rosenboom says opportunities to secure a completed apartment with this level of outlook are becoming increasingly rare.

"The size of the site is something that would be incredibly difficult to replicate today," she says.

"That's allowed Chevron One to deliver the sort of amenity, open space and resident facilities that very few projects can offer. There are not many completed apartment buildings on the Gold Coast right now that can compete with the combination of scale, quality and amenity."

[smartcode_project:default project_id=6515 project_image_fid=68839]

There's around 2,000 sqm of amenity solely for the use of residents of Chevron One. Club One features a uniquely shaped swimming pool that mirrors the footprint of the building itself, set within a extensively landscaped gardens. There's also an indoor pool and spa, a fully equipped gym with a Pilates room, a yoga garden, a bookable private dining area and lounge that can host up to 30 people, and a 24-hour concierge service.

As for the buyers, Rosenboom is fielding enquiry from everywhere: Sydneysiders and Melburnians looking at the new and off-the-plan market following the changes in the Federal Budget, as well as those looking to relocate, through to South East Queenslanders seeking either a permanent home or a weekender bolthole.

"The Gold Coast lifestyle continues to resonate with people relocating from the southern states, and when they see the views and the quality of what's been delivered at Chevron One, it becomes very easy for them to understand the appeal," Rosenboom says.

A diverse mix of one, two and three-bedroom apartments remain available, with each offering "something a little different", be it the orientation and views, configuration, or level, to suit a wide variety of buyers.

The remaining apartments are ready to inspect in person, by appointment.

[smartcode_project_cta:default project_id=6515]

A decade in the making: Residents to move into Chevron One as construction wraps up

A general rule of thumb in new apartment developments is that the penthouses get the rooftop.

It's a formula that's become commonplace across Australia's apartment market. Residents might have access to a pool, gym or barbecue facilities on a dedicated lower level, but the most desirable outdoor spaces are typically reserved for the highest-priced homes at the top of the building.

<a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Property Group</a> has taken the opposite approach.

Rather than dedicating the rooftop to a handful of buyers, the Gold Coast developer has made it the centrepiece of its Flourish collection, creating expansive shared spaces from the best vantage point in the building.

The philosophy has reached its most ambitious expression at <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> in Palm Beach, where two rooftop precincts connected by a skybridge will deliver one of the most extensive lifestyle offerings seen in a residential apartment project on the Gold Coast.

[smartcode_project:default project_id=150017 project_image_fid=374053]

"We're seeing a clear move toward developments that offer more than just an apartment," Sherpa Group founder Christie Leet said.

"People want spaces that support how they actually live, whether that's working from home, staying active, or spending time with family and friends.

"That's where amenity becomes critical. It's not just about what's included, but how those spaces are designed to be used every day."

[smartcode_project:default project_id=150017 project_image_fid=374052]

The breadth of amenity has already attracted buyers across multiple demographics. Younger first home buyers have been drawn to Soleira's one-bedroom apartments, a product rarely delivered in Palm Beach, while families have responded to practical inclusions such as the shallow children's pool adjoining the main lap pool and the extensive communal recreation areas.

Instead of a single rooftop, Soleira delivers two distinct lifestyle zones.

[smartcode_project:default project_id=150017 project_image_fid=372547]

The southern rooftop has been dedicated to wellness, featuring a gym, yoga and Pilates studio, work-from-home facilities, a wellness centre, spa, and hot and cold plunge pools.

The northern rooftop focuses on recreation and entertaining, incorporating a heated resort-style pool, private dining rooms, pizza ovens, barbecues, a golf simulator, children's recreation areas, and what is expected to be the Gold Coast's first rooftop basketball court, which will also double as a squash court.

[smartcode_project:default project_id=150017 project_image_fid=374054]

Beyond the rooftops, Soleira will introduce 1,500 sqm of curated retail beneath the towers, creating one of Palm Beach's first genuinely mixed-use lifestyle precincts where cafés, restaurants and convenience retail become part of residents' everyday lives.

Sherpa has also retained management rights across the development, allowing it to oversee the long-term operation of the building through a 24-hour concierge model. The developer is also exploring additional revenue streams within the precinct aimed at helping offset ongoing body corporate costs for residents.

[smartcode_project:default project_id=150017 project_image_fid=370962]

While Soleira is the largest project Sherpa has delivered, the rooftop-first philosophy has been evolving for several years.

It began with <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>, the first project released under the Flourish brand. Rather than competing at the ultra-luxury end of the market with oversized half-floor and full-floor residences, Sherpa focused on creating lifestyle-driven apartments supported by resort-style shared spaces.

Amargo introduced more than 800 sqm of rooftop amenity, combining wellness facilities, heated pools, entertaining areas, cabanas, pizza ovens and private dining spaces into what was designed as an extension of residents' homes rather than a facility used only occasionally.

[smartcode_project:default project_id=146527 project_image_fid=366550]

That approach continued with Flourish Oasis, where the same amenity-led philosophy was refined into a more boutique development. Strong demand from Sherpa's growing VIP database saw much of the project sold before it reached the broader market, reinforcing buyer appetite for apartment communities centred around shared lifestyle experiences.

Flourish Amargo is slated for completion mid-way-through next year, with Oasis to be delivered by late 2027. Flourish Soleira is expected to complete in 2030.

[smartcode_project_cta:default project_id=150017]

Sherpa takes amenity to the sky as Flourish Soleira captures booming Palm Beach demand

As apartment living continues to evolve across Sydney's growth corridors, the quality and distribution of shared spaces is increasingly shaping how residents experience home. Rather than functioning as add-ons, amenities are being embedded into the daily rhythm of a building, supporting everything from quiet retreat to social interaction, often within a single vertical community.

At <a href="https://www.apartments.com.au/new-apartments/aeris-melrose-park-nursery-street-melrose-park-nsw-2114">Aeris</a> in Melrose Park, this approach is resolved through a layered amenity offering that unfolds from ground level through to its upper podium. Developed by <a href="https://www.apartments.com.au/developers/sekisui-house-australia">Sekisui House Australia</a> in partnership with Hankyu Hanshin Properties, the project introduces 468 apartments across two towers and a mid-rise building, positioned at the highest point of the broader masterplan.

[smartcode_project:default project_id=426 project_image_fid=359199]

The amenity experience begins at street level, where two courtyards sit within a landscaped setting that connects residents to the wider network of parks and green spaces. These green spaces are not isolated pockets but part of a wider pedestrian network that links Aeris to the surrounding <a href="https://www.apartments.com.au/developments/melrose-park-nsw-2114">Melrose Park</a> precinct, including Central Park, future schools, and the Town Centre opening in July 2026. The result is a transition that moves from public to private without abrupt boundaries, allowing residents to pass through shaded, tree-lined environments before reaching the building itself.

Moving upward, the focus shifts to the level five podium, where the primary communal facilities are concentrated. This space brings together a 16-metre swimming pool, outdoor seating areas, and a communal BBQ zone arranged to take advantage of elevated outlooks. Seating is positioned beneath pergolas, creating pockets of shade that extend the usability of the space throughout the day. The pool edge aligns with views toward the wider district, reinforcing the sense of elevation that defines the project’s positioning.

In the adjacent building, this is complemented by quieter, more contemplative spaces, including an outdoor cinema set within the same level. Positioned to operate primarily in the evening, it introduces a different tempo to the shared environment, shifting from daytime activity to after-hours use without requiring separate zones.

[smartcode_project:default project_id=426 project_image_fid=360299]

The podium also accommodates an intimate private resident gym. Located on the lower levels, it gives residents convenient access to fitness facilities without leaving the building.

Above, the elevated podium sky deck extends the amenity offering, providing additional open-air spaces with elevated outlooks across the surrounding landscape. While more restrained in program, this upper level reinforces the project’s vertical progression, from ground-level greenery to elevated outlook, allowing residents to move between distinct spatial conditions within a single address.

This distribution of amenities reflects a deliberate response to how residents use space across the day. Sekisui House Australia Sales and Marketing Director Peter Kalaf points to the role these shared areas play in shaping buyer demand. Aeris has been conceived as more than a collection of apartments, with the podium pool, gym and outdoor cinema forming part of a broader lifestyle offering that extends the home beyond each individual residence.

[smartcode_project:default project_id=426 project_image_fid=360300]

What distinguishes Aeris is not the inclusion of these elements individually, but how they are arranged in relation to one another. Active, social, and passive spaces are layered vertically rather than separated, allowing residents to choose between them without leaving the building or moving far from their apartment. This proximity supports both routine use, such as a morning swim or evening workout, and more occasional gatherings, whether around the BBQ area or within the cinema setting.

The amenity design also sits within a broader framework of connectivity across Melrose Park. The Melrose Park Town Centre, anchored by Coles and Dan Murphys, features a mix of retail, dining, health and lifestyle offerings, bringing everyday convenience closer to residents. By the end of the year, more than five hectares of parks and open space, equivalent to around seven football fields of green space on residents' doorstep, will further enhance the precinct, allowing the internal facilities at Aeris to operate as an extension of the wider neighbourhood rather than a substitute for it.

Construction at Aeris continues to gather momentum, with ground floor slabs expected to be completed in late 2026 before the first sections of the buildings begin to rise above ground.

[smartcode_project_cta:default project_id=426]

Elevated amenity anchors daily life at Aeris, Melrose Park

Retail

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Following the release of Myer’s annual report, publicly-listed investment company Premier has called for the immediate resignation of the Myer board.
The renewed call what Premier calls “disastrous” and “shameful” results as Myer reveals to shareholders that EBITDA is down 41.6 per cent.
“Two years into John King’s tenure – it’s clear the Myer turnaround is in tatters. It’s now time for the CEO to follow the Board through the exit”, the company said.
Premier is headed by chairman Solomon Lew, a former Coles Myer director and former board member of the RBA.
Its board also includes former David Jones CEO Mark McInnes, and former state treasurer of Tasmania David Crean.
Shares in Myer fell over 15 per cent after the release of results, dropping to 22 cents per share.
At the previous close, Myers shares were worth 26 cents per share.
Premier, a long-term investor and supplier in the retail group, said they were “perplexed” by John King’s leadership.
King, who has headed Myer as chief executive for two years, was hired as Myer’s turnaround hope following his successful turnaround of the UK department store chain House of Fraser from 2006 to 2015.
Myer delivered the second biggest loss in its history, a statutory net loss after tax of $172.4 million.
However, Premier was quick to point out that, while shareholders have been taken for a ride, King pocketed $1.59 million.
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j.ballantyne1990-6AQqhLzZaK

Premier Investments call for the resignation of the Myer board

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Retail properties with existing kitchen infrastructure are moving quickly as food and beverage operators take advantage of increased takeaway and home delivery demand.
Due to changes in the hospitality sector, smaller retail spaces across Melbourne are being snapped up by operators with a particular attraction to those already fitted out, according to Fitzroys.
Since the state of emergency was declared, Fitzroy has secured 67 leases, 19 of which were to hospitality tenants.
Associate director James Lockwood said a number of these have taken place throughout Melbourne’s famous shopping strips.
A number of leases have been struck on extended terms, as the added attraction of retail strip properties is that they often attract rents from around $50,000 to $75,000.
CBD properties see leased at circa $100,000 per annum.
A number of deals have been secured in the last few weeks including deals on Rathdowne Street, Carlton and Commercial Road, South Yarra. 
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Smaller hospitality retail spaces across Melbourne are being snapped up by operators

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Mirvac Retail has announced an innovation to help its shopping centre customers navigate busy periods and time manage their physical trip to the shops via the centre website and a new tracking tool.
The traffic tracker application, now available on each of the portfolio’s 16 centres’ websites, has been partly in response the COVID-19 concerns about heavy crowd periods at centres, but also a continuation of the agile teams constant review and response to shopper needs and a focus on customer pain points. 
A simple page on the website under ‘Plan Your Trip’ shows tracking data across each opening hour of the day from the previous week, on a day by day basis, to analyse preferred times to attend the centre and improve the customer experience. The traffic data is presented in similar format to Facebook’s Popular Hours Google’s Popular Times tools. 
“In our Retail Reimagined focus we are always seeking ways to improve both the customer experience and also productivity in our centres for our retailers by helping people maximise their time and choices with quality available data,” said Nicole Imberger, director of experience at Mirvac.
“We hosted over 120 million visitations across our portfolio just in the last year. There is a lot of traffic data we can share and we believe people are seeking increased flexibility and information in so many aspects of their life in these days of more pressure and concern about being in crowded locations,” Ms. Imberger added 
Mirvac Retail has been actively focused on prioritising the health and safety of shoppers and retailers since the pandemic outbreak with many contactless initiatives implemented and hygiene and traffic management regimes put in place.
Compliance with all government guidelines has been a priority and as the restrictions ease and the community ventures back to centres for many and varied reasons, from shopping essentials to entertainment and community connection, it is all the more important for Mirvac to find ways to assist with the new normal of living in COVID times in our particularly urban locations.
Centres rolling out the weekly data include: Moonee Ponds Central in Victoria, Toombul, Orion Springfield Central and Kawana Shoppingworld in Queensland, and in New South Wales at Broadway Sydney, East Village, South Village, Greenwood Plaza, Harbourside, Tramsheds Sydney, Birkenhead Point Brand Outlet, Rhodes Waterside, Stanhope Gardens, Cherrybrook Village and MetCentre as well as Cooleman Court in the ACT.
In a further recent measure to improve customer safety Mirvac Retail locations that required contact to collect car park tickets have now installed contactless wave technology to activate ticket machines at Rhodes Waterside, Stanhope Gardens, Tramsheds and Broadway Sydney.
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Mirvac Retail launches traffic tracker to support shoppers with new COVID conscious planning tools

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Ahead of the full impact of the COVID 19 pandemic, nearly 1 in 10 stores across WA’s 78 largest supermarket based shopping centres is currently vacant, according to a new study by independent commercial property research and information firm, Y Research.
The study physically reviewed the occupancy of metropolitan Perth’s 78 largest supermarket based centres from Butler in the north, Mundaring in the east and Halls Head in the south across June 2020, after relaxation of COVID 19 restrictions.
As of June 2020, the vacancy rate across these centres was 9.4%.
The vacancy rate for WA’s largest centres, Major Regionals which includes centres such as Lakeside Joondalup, Westfield Booragoon and the Galleria, was 7.4%, more than three times higher than their historical average of 1 to 2%. Despite anecdotal evidence that consumers are shopping at local neighbourhood centres, these centres recorded the highest vacancy rate of 13.9%, followed by sub regional centres with 11.5%.
There is a wide disparity across centres reflecting economic conditions across Perth’s suburbs. Claremont Quarter recorded the lowest vacancy rate - 1.7%. Conversely 21 centres across suburban Perth have vacancy rates already over 15%, with 5 centres more than 25% vacant.
There are a range of factors contributing to the current level of vacancy - weak economic conditions post the mining boom, a string of national retailers going into administration and recent centre expansions adding supply.
Y Research Principal Damian Stone said, “So far COVID has had minimal impact on current vacancies. A limited number of retailers, mainly tourism based retailers such as travel agents, have surrendered their tenancies. For a majority of retailers, a combination of rental relief from shopping centre owners, a national code of conduct restricting evictions and Government Assistance (Job Keeper) has seen them return to trading."
"The longer term impact of the pandemic on WA’s shopping centres remains uncertain. Based on discussions with industry stakeholders, the expectation is that across the balance of 2020 we will see a limited number of retailers close, but the new looming cliff is February/March 2021 when Government assistance ends and investment decisions, such as ordering winter stock, are required."
"Retailers will be depending on a strong Christmas/New Year period in order to trade through the worst of the economic pain caused by the pandemic. Going forward, the internet is as much a threat to centres as COVID. The pandemic has driven significant retail sales online with a broader range of consumers happy to shop online through platforms such as Amazon, Uber Eats and retailers’ expanded e-commerce platforms."
"The pandemic has seen the range of products purchased online grow from fashion, food and entertainment (Netflix and books) through to groceries and homewares."
"The continued closure, either full time or on reduced hours, of a number of national chain stores is a likely early indicator of consolidation of store networks adding to existing high vacancies. Further closures will be difficult to fill."
"In response, in the years ahead the tenancy mix across WA centres will evolve with services such as medical centres and gyms becoming a standard feature; lower discretionary spending will drive take up from discount retailers and moves to add density surrounding the centre will be common place."
"For retailers, further discounting will likely be required in order to get consumers to part with limited discretionary spending post Government assistance."
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Nearly 1 in 10 stores across WA shopping centres is vacant: Y Research

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GUEST OBSERVATION
A department store employee wheels clothes across Melbourne’s Bourke Street Mall on August 5 2020, as retailers prepared to close their doors to customers.
“This is not a bluff,” <a href="https://www.theaustralian.com.au/business/companies/mosaic-could-shut-between-300-500-stores-amid-rent-disputes-online-switch/news-story/8868980e1be2de4048b93b17b9da3880">Scott Evans</a>, the chief executive of Mosaic Brands, has said of his threat to permanently close 300 to 500 stores in Australia unless landlords reduce rents.
Mosiac’s network of about 1,300 apparel stores includes Katies, Noni B, Rivers, Rockmans, Millers and Crossroads. With stores shuttered temporarily due to COVID-19 restrictions, it posted a <a href="https://www.afr.com/companies/retail/mosaic-brands-to-close-stores-after-170m-loss-20200824-p55ovi">A$170.5 million loss</a> in the year to June.
It and other retailers such as <a href="https://www.premierinvestments.com.au/our-brands/">Premier Investments</a> (owner of Just Jeans, Portmans and Jacqui E brands) <a href="https://www.smh.com.au/business/companies/westfield-locks-retailers-out-of-stores-as-rent-battle-escalates-20200820-p55ns2">have reportedly</a> been paying lower or no rent to landlords, on the basis their rents should reflect revenue and landlords should share the pain.
Last week Mosiac’s stalled rent negotiations with Australia’s biggest shopping centre landlord, Scentre Group, led to a <a href="https://www.afr.com/companies/retail/retailers-landlords-in-open-warfare-over-rents-20200825-p55p5f">lockout of 129 Mosaic stores</a>. Scentre also locked the doors to 38 stores owned by luggage retailer Strandbags.
According to <a href="https://www.theaustralian.com.au/business/companies/mosaic-could-shut-between-300-500-stores-amid-rent-disputes-online-switch/news-story/8868980e1be2de4048b93b17b9da3880">Evans</a>:
The retail rental market in Australia is not paused because of the pandemic. It is fundamentally changed for the future.
A history of growth, conflict and negotiation
Though the coronavirus crisis has brought things to a boil, tensions between shopping centre tenants and landlords have simmered for more than 40 years.
Behind Mosaic’s standoff with Scentre are the underlying power dynamics between tenants and landlords. Mutually dependent on one another, they have always fought over the spoils of shopping centre profits. With the COVID-19 crisis, strained relationships are starting to break down.
Australia’s first American-style <a href="https://australianfoodtimeline.com.au/first-australian-shopping-mall/">shopping centre opened in 1957</a>, in the Brisbane suburb of Chermside. It had space for one department store, one supermarket, 24 specialty stores and parking for 650 cars.
As the rise of the private motor car reshaped cities and suburbs, <a href="https://www.propertyobserver.com.au/https://www.routledge.com/Managing-the-Marketplace-Reinventing-Shopping-Centres-in-Post-War-Australia/Bailey/p/book/9781138323025">shoppers embraced</a> the convenience and comforts and comforts of the mall.
By the late 1970s they were the dominant shopping experience, outstripping many established “high streets”. They became <a href="https://www.propertyobserver.com.au/https://epress.lib.uts.edu.au/index.php/sydney_journal/article/view/2817">social as well as commercial hubs</a>.
They were also protected by planning legislation intended to constrain sprawling development, but which also created geographic monopolies by blocking competition nearby.
This all produced highly sought after and valuable retail space.
Naturally owners were keen to increase their profits by <a href="https://www.google.com.au/books/edition/Managing_the_Marketplace/ZbXjDwAAQBAJ?hl=en&amp;gbpv=0">expanding these spaces</a> to attract even more shoppers.
Calls for government intervention
But as centres got bigger and more and more specialty retailers signed leases, complaints began to emerge about exploitation and steep rent hikes. By the early 1980s tenants’ complaints had become an issue for both sides of politics.
Intense lobbying led to government inquiries around the country, which found sufficient evidence to recommend industry self-regulation and then <a href="https://www.propertyobserver.com.au/https://www.legislation.nsw.gov.au/#/view/act/1994/46">retail tenancy legislation</a>.
But the fundamental power dynamics remain. Landlords still have the most convenient and attractive locations for stores. They have control over entire retail environments, and even collect the sales data of their tenants. Their bargaining position in leasing negotiations is invariably very strong.
Sharing profits and costs
In 2008 a <a href="https://www.pc.gov.au/inquiries/completed/retail-tenancies/report/retail-tenancy-market.pdf">Productivity Commission inquiry</a> noted:
Well-managed shopping centres can unify a large and divergent group of tenants and help centre trade. In return, tenants in centres generally pay higher rents and outgoing expenses than similar tenants in a shopping strip and forego some independence in operating their business.
It has often been a mutually advantageous relationship, but there has always been a contest between tenants and landlords over how they share both benefits and costs.
The retailers’ argument is rent should be based on the value of the customer traffic the shopping centre delivers to their stores, and those customers have evaporated with COVID-19. As analyst <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2020-05-21/shopping-centre-landlords-among-biggest-coronavirus-losers/12271266">Bill Mooney put it</a>:
With a lease agreement there’s an expectation of a certain amount of customers coming through into the shopping mall and if that nexus is broken, then yes, the landlord can insist on his rights, but which retailer is going to continue to pay rent and go broke?
Mosaic’s projection of store closures emphasises this point.
No one will come out of this a winner. The fight to minimise losses will be bitter. The first casualties will be the most vulnerable: the smallest tenants, with the least bargaining power, in the most precarious financial situations. This echoes the broader pattern of the pandemic’s impact.
For landlords there are longer-term questions. Will the current standoff push retailers towards a permanently smaller physical footprint and greater investment in online shopfronts? Has it created even more uncertainty about retail’s future? How deeply has trust been eroded?
Whatever happens, when there is any sort of return to normal, both sides will enter fresh leasing negotiations with an acrid taste from what is rapidly becoming their most vitriolic fight to date.
<hr>
This article has been co-published with <a href="https://lighthouse.mq.edu.au/">The Lighthouse</a>, Macquarie University’s multimedia news platform.<img src="https://counter.theconversation.com/content/145094/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
<a href="https://theconversation.com/profiles/matthew-bailey-414427">Matthew Bailey</a>, Lecturer, Retail History, <a href="https://theconversation.com/institutions/macquarie-university-1174">Macquarie University</a>
This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/trouble-at-the-mall-as-landlords-and-tenants-ponder-mutually-assured-destruction-145094">original article</a>.
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Trouble at the mall as landlords and tenants ponder mutually assured destruction

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Twisted Dessert Bar has agreed terms on a new lease over a single level retail property at Fitzroy in Melbourne’s inner north in a deal brokered by Teska Carson’s Reece Israel.  
The 329 Brunswick Street property comprises a 130 square metre retail premises with several metres frontage to Brunswick Street and rear laneway access via a roller shutter door.
Mr Israel said the property was leased on a three year term with two x three year options at $35,000 per annum net.
He said the tenant had been in the market for a well located space in terms of both amenity and access.
"The property is located in one of Melbourne’s most popular restaurant, fashion and entertainment precincts just ten minutes from the centre of Melbourne. It is also close to the Eastern Freeway and has trams running past the front door.
"It was a great fit for the tenant’s requirements,’’ Mr Israel said.
The lessor is a Melbourne based investor.
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Twisted Dessert Bar takes Fitzroy's Brunswick Street lease

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EXPERT OBSERVER
Australian supermarket giant Woolworths has announced its single biggest investment in logistics infrastructure, spending A$780 million to replace up to 1,300 workers with robots.
It plans to build one semi-automated and one fully automated distribution centre in south-west Sydney. About 650 jobs will be created at the new centres, to open in 2024. Three existing centres (two in Sydney, one in Melbourne) will close as a result.
Woolworths’ chief supply chain officer, Paul Graham, emphasised <a href="https://www.itnews.com.au/news/woolworths-to-build-automated-distribution-centres-in-nsw-549603" target="_blank">the safety benefits</a> of automation:
Cutting-edge automation will build tailored pallets for specific aisles in individual stores – helping us improve on-shelf product availability with faster restocking, reducing congestion in stores, and enabling a safer work environment for our teams with less manual handling.
In these COVID-conscious times that’s the obvious spin.
But it’s true this is a response to the changes being wrought on the retail sector by COVID-19.
The principal change is a matter of pace. COVID-19 has turbocharged the shift to online shopping. Even as social-distancing rules ease, this trend will consolidate. Many bricks-and-mortar shops are in trouble, particularly those in shopping centres.
Retail will also be shaped by how COVID-19 has changed our shopping behaviour, with thrift and value being important.
<h2>Shopping online is the new norm</h2>
In April, 5.2 million Australians shopped online, according to Australia Post’s <a href="https://auspost.com.au/content/dam/auspost_corp/media/documents/2020-ecommerce-industry-report.pdf" target="_blank">2020 eCommerce Industry Report</a>. The Australian Bureau of Statistics estimates those sales were worth A$2.7 billion, <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/8501.0Main%20Features3Apr%202020?opendocument&amp;tabname=Summary&amp;prodno=8501.0&amp;issue=Apr%202020&amp;num=&amp;view=" target="_blank">11.1% of all physical retail sales</a>, compared with 7.1% in March 2019.
This <a href="https://www.afr.com/companies/retail/grocery-deliveries-delayed-as-online-shopping-soars-20200309-p5483v" target="_blank">sharp hike in demand</a> exposed weaknesses in retailers’ <a href="https://home.kpmg/au/en/home/insights/2020/04/coronavirus-COVID-19-retail-survival-and-revival" target="_blank">online capabilities</a>. For example, crushing online demand meant both Woolworths and major rival Coles temporarily <a href="https://insidefmcg.com.au/2020/03/17/woolies-and-coles-suspend-online-orders-as-shoppers-descend-on-sites/" target="_blank">suspended</a> their online shopping services.
More automated fulfilment centres are part of meeting these online demands. Of course, such investments were already on the radar.
In March 2019, Coles announced <a href="https://www.colesgroup.com.au/media-releases/?page=coles-enters-partnership-with-ocado" target="_blank">an exclusive deal</a> to use the “end-to-end online grocery shopping solution” developed by Ocado, a British online supermarket chain that has no stores, only warehouses. Its technology spans the online shopping experience, automated fulfilment and home delivery.
The Coles plan included two new “highly automated” customer fulfilment centres in Melbourne and Sydney, to be ready in 2023. Coles also announced plans for two new automated distribution centres in Queensland and NSW, costing A$700 million, <a href="https://www.afr.com/companies/retail/redundancies-loom-as-coles-eyes-automation-spend-to-catch-woolworths-20181004-h168qt" target="_blank">in October 2018</a>.
Woolworths itself has already opened the Melbourne South Regional Distribution Centre.
So these latest moves are part of a trend, albeit one unexpectedly accelerated by COVID-19. And once consumers try new channels, <a href="https://journals.sagepub.com/doi/full/10.1509/jm.09.0362" target="_blank">studies</a> show, they are likely <a href="https://link.springer.com/article/10.1007/s40547-014-0031-y" target="_blank">to stick with them</a>.
<h2>The future is dark</h2>
At the other end of the supply chain, the shift to online shopping has created demand for “<a href="https://www.businessinsider.com.au/dark-stores-online-retail-coronavirus-2020-4" target="_blank">dark stores</a>” – essentially, stores without customers. These smaller, decentralised facilities, located in suburbs rather than industrial parks, are designed to pick and dispatch online orders quickly.
Woolworths opened its first dark store <a href="https://www.smh.com.au/business/companies/woolworths-opens-first-onlineonly-dark-store-20140811-102lh0" target="_blank">in Sydney in 2014</a>. <a href="https://www.smh.com.au/business/companies/dark-stores-coles-trials-shops-with-no-customers-20160622-gpowau" target="_blank">Coles</a> opened its first in Melbourne in 2016. Existing stores are also being repurposed as dark stores. In April 2020, Australia’s Kmart temporarily converted three stores to use <a href="http://mhdsupplychain.com.au/2020/04/17/kmart-closes-stores-to-convert-them-into-distribution-centres/" target="_blank">as fulfilment centres</a>.
Such moves may become permanent, as shoppers demand faster delivery times and physical store assets become less viable as “traditional” retail businesses.
Existing stores are also being adapted to respond to customer demands for faster, more efficient online shopping. In January 2020, Woolworths began building its first “<a href="https://www.woolworthsgroup.com.au/page/media/Press_Releases/carrum-downs-the-first-woolworths-in-australia-to-get-cutting-edge-online-shopping-technology/" target="_blank">eStore</a>” - an automated facility adjoining its supermarket in Carrum Downs, Melbourne.
<h2>Fewer, smaller stores</h2>
As online shopping increasingly provides greater revenue streams for retailers, more physical store closures are also on the cards.
In May, Kmart’s owner, Wesfarmers, announced it would <a href="https://theconversation.com/dont-blame-covid-19-targets-decline-is-part-of-a-deeper-trend-139205" target="_blank">shut 75</a> of its Target stores (and convert the rest to Kmart stores). Also looking to downsize are Australian department store icons <a href="https://www.smh.com.au/business/companies/myer-better-off-with-fewer-stores-geoff-wilson-20200330-p54f77" target="_blank">Myer</a> and David Jones, which have accelerated their plans to reduce floor space <a href="https://www.smh.com.au/business/companies/david-jones-accelerates-store-closures-as-sales-slump-35-per-cent-20200527-p54wyj" target="_blank">20% by 2025</a>.
Footwear giant Accent Group – which owns more than a dozen shoe brands and has more than 500 stores in Australia and New Zealand – is planning to close <a href="https://www.9news.com.au/national/accent-to-close-28-in-shift-to-online-retail/3a547554-27f3-4413-9675-3510f7c74437" target="_blank">28 stores</a> and focus more on online sales.
As online revenues grow, expect more “right-sizing” and closures.
<h2>Repurposing shopping centres</h2>
All these closures will add to the woes of shopping centres.
Though crowds reportedly <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2020-05-09/shoppers-raise-alarm-over-coronavirus-social-distancing/12231780" target="_blank">surged</a> back to centres when “lockdown” restrictions were eased, growing awareness that the pandemic is not over and social distancing protocols continue to <a href="https://theconversation.com/coronavirus-has-turned-retail-therapy-into-retail-anxiety-keeping-customers-calm-will-be-key-to-carrying-on-138777" target="_blank">create consumer anxiety</a>.
Until people feel safe shopping, dining and gathering in crowded public places, <a href="https://www.smh.com.au/business/markets/damaged-and-scarred-psychological-effect-of-pandemic-set-to-hold-back-economic-recovery-20200506-p54q64" target="_blank">consumer aversion</a> will remain.
In response to these COVID-conscious times, shopping centres will endeavour to enhance those aspects of the shopping experience, such as sensory elements and entertainment, which the online shopping experience can’t provide.
The retail mix will change: fewer fashion and general merchandise shops, and more services such as medical centres, offices and childcare centres.
<h2>Opportunities for smaller retailers</h2>
One bright spot may be for local and independent shops.
Smaller retailers can often adapt faster than larger ones. Smaller community pharmacies, for example, implemented social distancing and hygiene measures more easily than larger retailers, due mainly to their smaller size and having less traffic.
There are opportunities to leverage shoppers’ desire to <a href="https://thenewdaily.com.au/finance/consumer/2020/03/19/coronavirus-small-business-support/" target="_blank">support</a> local shopkeepers, producers and growers. Locally made goods and services are also less likely to have long supply chains that will impede overseas deliveries while COVID-19 is uncontained.
But they’ll still need to sort out their online shopping experience.<img src="https://counter.theconversation.com/content/139025/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
<a href="https://theconversation.com/profiles/gary-mortimer-1322" target="_blank">Gary Mortimer</a>, Professor of Marketing and Consumer Behaviour, <a href="https://theconversation.com/institutions/queensland-university-of-technology-847" target="_blank">Queensland University of Technology</a>; <a href="https://theconversation.com/profiles/jana-bowden-380114" target="_blank">Jana Bowden</a>, Associate Professor of Marketing and Consumer Behaviour, <a href="https://theconversation.com/institutions/macquarie-university-1174" target="_blank">Macquarie University</a>; <a href="https://theconversation.com/profiles/jason-pallant-8729" target="_blank">Jason Pallant</a>, Lecturer of Marketing, <a href="https://theconversation.com/institutions/swinburne-university-of-technology-767" target="_blank">Swinburne University of Technology</a>; <a href="https://theconversation.com/profiles/louise-grimmer-212082" target="_blank">Louise Grimmer</a>, Senior Lecturer in Marketing, <a href="https://theconversation.com/institutions/university-of-tasmania-888" target="_blank">University of Tasmania</a>, and <a href="https://theconversation.com/profiles/martin-grimmer-330523" target="_blank">Martin Grimmer</a>, Professor of Marketing, <a href="https://theconversation.com/institutions/university-of-tasmania-888" target="_blank">University of Tasmania</a>
This article is republished from <a href="https://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/covid-19-has-changed-the-future-of-retail-theres-plenty-more-automation-in-store-139025" target="_blank">original article</a>.
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COVID-19 has changed the future of retail: there’s plenty more automation in store

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<div class="WordSection1">
The Makris Group is set to divest two Adelaide retail assets, including Rundle Mall’s City Cross Shopping Centre and office complex fronting Grenfell Street.
The offering will also include the North Adelaide Village neighbourhood shopping complex and an adjoining site at 85-87 O’Connell Street.
CBRE’s Simon Rooney and James Douglas have been appointed to steer the sale campaign on behalf of the Makris Group, South Australia’s largest privately-owned retail property group. 
The the Makris Group has a large, diversified portfolio across retail, commercial and maritime sectors.
Mr Rooney said the properties, which will be offered for sale individually or in-one-line, were expected to generate significant interest. 
“Investors will be attracted to the location of City Cross within Adelaide’s tightly held CBD, and the affluent locale of North Adelaide Village,” Mr Rooney added. 
The City Cross Shopping Centre (pictured above) and office complex is the largest of the two offerings, providing a gross lettable area of 10,512sqm.
The centre offers extensive frontages to Rundle Mall – the retail heart of the Adelaide CBD and Grenfell Street, the city’s core commercial address for corporate and Government tenants.
The thriving CBD centre includes anchor tenants Harvey Norman, Rebel Sport and Australia Post, alongside 57 specialty tenancies, including a highly productive food offering.
Mr Rooney noted that City Cross provided the opportunity to acquire a major retail CBD holding, with multiple mixed-use development opportunities. 
The existing centre services an expansive metropolitan trade area population of over one million, a worker population of 117,600 and a visitor market of over eight million per annum.
The trade area retail expenditure pool is $15.1 billion, including $7.9 billion in the primary trade area. 
Rounding out the portfolio is the thriving North Adelaide Village Shopping Centre and the adjoining 85-87 O’Connell Street. 
Situated just 3km from the CBD, North Adelaide Village is in one of Adelaide’s most affluent catchments, in close vicinity to the redeveloped Adelaide Oval and revitalised Riverbank Precinct. 
The main trade area population of 32,370 is projected to increase to 41,320 persons by 2036, reflecting average annual growth of 1.4% per annum. 
The centre benefits from a diverse tenancy mix and a focus on convenience, lifestyle, service and fresh food. It is anchored by a strong performing Romeo’s Foodland on a long-term lease until 2033 with a further 25-year option, alongside a Goodlife Gym, 34 specialty tenancies and four office tenancies.
The corner site offers future mixed-use development potential of up to six-storeys – subject to the relevant council planning approvals.
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South Australian billionaire Con Makris to sell high profile retail portfolio

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Melbourne tyre retailer and wholesaler, Superior Tyres, will open its doors in Sunshine West after securing on an industrial facility. 
The 7,036sqm property at 531 Somerville Road features a building area of 4,071sqm, incorporating a mix of office, warehouse and large showroom/retail areas.
The property, formerly occupied by Tradelink, features three container height roller doors, a large concrete hardstand and ample car parking.  
CBRE negotiated the lease.
Superior Tyres will lease the property for six years at a rate of $330,000 per GST (plus GST and outgoings).  
Mr Murphy commented Superior was looking to relocate from Kensington/
"Superior Tyres identified this property as a perfect fit for the long-term future of its family business. It offered an ideal blend of retail, office and warehouse.  
The onset of COVID-19 caused some delays in finalising the transaction but both landlord and tenant were understanding and committed to a mutually-beneficial deal.”  
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Superior spot in Sunshine West for tyre specialist 

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An offshore purchaser has purchased a 48 sqm vacant retail space at Shop 1, 61-65 Regent Street, Chippendale NSW from a Private group for $682,000. 
The sale reflected a building rate a $14,208/sqm – a strata retail record for the precinct. 
Key features of the property include 48sq m (+4sq m bathroom area) retail Shop, large 10m street frontage with outdoor seating potential, one secure parking space, separate toilet on title plus rear loading dock access. The property’s previous rental was $725 per week plus GST.
The property is 600m to Central Station and 100m to Central Park development and within close proximity to the Spice Alley restaurant and UTS.
The deal was negotiated by Savills Australia who said the space would be suitable for (STCA): Bottle Shop, Wine Bar, Beauty, Nail Polish, Eye lash extensions, Bakery, Deli, Specialty Shop Cafe, Takeaways, Cakes/Patisserie.
 
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