Retail property in developed markets has been struggling across most of the world – and as retail businesses adjust to the impact of e-commerce, physical stores have closed and many investors have shunned the sector.
Australia’s retail property sector is proving more resilient, however. QIC, one of the market’s largest retail landlords, recently published research showing that while the Australian market has not been immune to the phenomenon of online sales – like elsewhere, penetration rates have increased and this trajectory is projected to continue – it has not been at the expense of brick-and-mortar retail. There is plenty of room for both physical and online retail to grow.
In this video, Matthew Strotton, QIC’s director, capital, global real estate, talks about the continuing retail evolution, the impact of the tech revolution on retail landlords and why increased investor scrutiny of the sector is a rational response.