The Perth retail strip market has shown robust levels of rebound in what appears a post COVID-19 economy for the State of Western Australia, according to new commercial research from Ray White Commercial (WA).

According to the ‘BETWEEN THE LINES Perth Retail Strips October 2021’ report, improving economic conditions within the State has had a significant impact on employment and residential house prices which has served to stimulate local retail trade levels across most sectors.

While COVID-19 has impacted retail at large, the report finds most of the retail strips surveyed are showing signs of rebound. While some locations such as Claremont and Cottesloe continue to feature high levels of clothing and soft goods, a sector in decline for most retail destinations, the potential to improve in the food retailing segment for these and other strips continues to be high.

Bay View Terrace, Claremont

The Bay View Terrace strip has a unique mix with Clothing and soft goods accounting for 27.61% of total NLA, followed by Services, a large growth sector notably with the increase in beauty/medical services. Limited food offerings across the strip highlight a potential new growth segment here in the largest growth industry of retail trade across the country. 

Vacancies have dramatically decreased across Bay View Terrace this year, up to 4 vacancies representing 7.23% (by sqm) of the retail strip, while four transactions recorded in the last 12 months highlight the heightened demand for quality stock below $4 million by private buyers and the ongoing confidence in this region.

Napoleon Street, Cottesloe

A destination shopping location, Napoleon Street continues to be the standout performer across all retail strips, with a combination of high occupancy and a vibrant and affluent population underpinning zero vacancy in the last survey. Assets continue to be tightly held with no transactions occurring in the last 12 months, however enquiry remains high by prospective purchases looking to secure a piece of this retail strip.

Fashion represents 33.60% of total floorspace this year, while Other Personal & Household Goods sits at 24.47% due to a high weighting in the jewellery and giftware segments. Food is also key with a high number of Cafes & Restaurants, together with Specialty Foods, while Services represent just over 10% of this location, which is low compared to other retail strip markets.

Rokeby Road, Subiaco

The Subiaco market has recorded one of its best results in the last four years, vacancy of 11.38% highlighting the rebound in which Rokeby Road is on the cusp of as Subiaco East is developed over the next decade together with One Subiaco finishing next year.

A number of office and retail assets transacted across this strip over the last year, both owner occupied assets together with private investors, and there have been some significant changes in the retail mix, in particular a decline in the clothing and soft goods sector and a large increase in other personal and household goods. Services historically have been high in this location, however medical and beauty related services have increased their share of stock along the strip.

Oxford Street, Leederville

The number of vacancies in Oxford Street fell to 3 following 8 shop fronts vacant in 2020, and this market is expected to improve dramatically with the recent completion of the new WA headquarters for the ABN Group which brought over 900 employees to the area. The Clothing and soft goods segment continues to decline, as well as recreational goods and other personal and household goods. Food is the major drawcard for this location and is only expected to increase given the large workforce about to descend on Leederville.

The redevelopment will also add quality retail offerings to the region which is expected to reinvigorate retail in the Leederville market with enquiry levels already showing some improvement. No sales transactions took place over the last 12 months.

Beaufort Street, Mt Lawley 

Previously one of the highest vacancy locations in the annual retail strip survey, the Beaufort Street strip has seen vacancy levels decline to 10.63% after peaking at 16.79% in September 2019. Investment in this location continues to be limited as assets remain tightly held, with no retail properties changing hands, however office assets continue to transact attracting quality capital values.

2021 has started to see a turnaround in the strip with the opening of The Elford Hotel and the redevelopment underway of the old Flying Scotsman by the Three Pound Group into a multi-storey hospitality venue. The Food retailing segment in this market has shown some decline over the past few years, however this year there has been some increase with a number of new hospitality venues opening which will reinforce this strip as a hospitality and food mecca. 

Click here to view and download the report.

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