Despite expectations that retail sales growth should slow further, retail property developments have continued. Growth in retail space has been driven largely by demand from national retailers, who are committing to new centres in order to retain market share.

 

It is anticipated that high increases in building costs will place pressure on rentals for new space, resulting in a disparity between the rentals of existing and new retail space. As such, there will be upside potential to increase rentals when leases in existing centres come up for renewal.