Retail opportunities are expected to burst through the country in 2019, according to an in-depth breakdown of upcoming trends from Bayleys Real Estate.
Bayleys representative Chris Beasleigh has revealed some of the countries upcoming real estate trends, in a newly released report. The analysis indicates an influx in new opportunities for business owners looking to diversify or entrepreneurs looking for an in.
One of the key trends is the rise of innovative retailers and landlords alike maximising returns by incorporating space-sharing options or sub-leasing into their contracts. "For co-existing businesses, the rationale being that while an enterprise may be trading for eight to 10-hours a day, the premises it occupies is technically open 24-hours a day. So why not make the most of those hours and fragment the rental accordingly,” said Beasleigh. We have already seen examples of this trend trickling through, but it is expected to rise exponentially in the coming year. From manicurists running their services within the makeup section of various department stores to florists operating in the daylight hours of a bar or the increasingly trendy ‘hole-in-the-wall’ style cafes, retailers are finding new ways to maximise their assets.
Regarding department stores, the retail future is foggy. The Australian sector is barely keeping afloat, while New Zealand is seeing a great variety among competitors. Some brands are eager to set up shop in popular retail hubs, keen to get in on the action, while others are struggling to keep the doors open.
In addition, Beasleigh expressed that New Zealand's overall commercial and industrial markets are expected to have a strong presence in 2019, with the impact of online retailing being over-dramatised. “Combine location convenience with personal service/customer knowledge, the whole retail ‘experience’, and quality of product, and you have the solid foundations for a successful retailing venture. That’s the sort of business plan detail which landlords will increasingly be looking for from their tenants and potential future tenants.”