News, Newsletters and Press

Retail on-line Forum

We need your input on a new idea. EPS are constantly searching for ways to add value in the retail community and one of the suggestions that came across our desk the other day is an online, retail focused, community forum.

On-line forums are quite a simple concept. They are an online place where people with similar interests can get together and discuss topics, swap information and generally help each other out.

If there is sufficient interest from you, the retailing community, EPS will host an on-line forum service on its web site (www.eps.net.au) at no charge to the users.

Before we do so however, we’d like to know what you think. Would you like access to an on-line forum, what subjects would you like to see discussed and do you think it would be valuable for the retail community?

Please let me know your thoughts. You can call me on 02 9419 8356 or email me at mwilkinson@eps.net.au

Retail Information Service (RIS) – Percentage Rent

Once again in a quest to expand and add new functionality to RIS we have created a new feature to this on-line lease data service: percentage rent information. Drawing on the source lease documents EPS have extracted the percentage rent data and calculated the percentage rent information.

In many cases you will be able to see the exact percentage rent clause from the lease agreement. Where the clause is an NBE type we have calculated the sales break even point based on the estimated current rent.

To make use of this new report simply select Percent Rent from the list of reports on the “Get Report” page.

If you do not have a subscription to the RIS service follow this link to see a preview of the reports available: http://www.eps.net.au/information/risStandardReports.asp

We hope that this extra piece of information makes the service even more valuable to you.

Retail Information Servcie (RIS) -- Update

Well we have just finished another update of RIS and we have data for over 6,500 lease records in the 40 largest New South Wales shopping centers.

About every year we look at the overall changes in lease data using the RIS database as our source. The results of the current investigation are below.

By the way if you would like to purchase an RIS subscription please contact Mike Wilkinson on 02 9419 836 or email him on mwilkinson@eps.net.au. You can also check out online information at our website.

Rent PSM variations

The chart below shows all of the leases for one of the centers on our database. As you can see the horizontal axis shows the size of the lease and vertical axis shows the rent per square metre (psm) for each lease. While we expected there to be some differences in the rent psm paid based on location and other factors we were surprised at the size of some of the variation.

For instance around the popular 50 m2 size some retailers are paying up to 4 times that of their neighbors. Even in the larger locations (say 200 m2) the most expensive leases still cost 300% of the cheapest leases.

We think that this shows some retailers are negotiating more effectively for their space.

Rent PSM By Landlord

Another view of our database that we thought might be of interest was to examine average rent psm by Landlords. The chart below shows the historical data as well as the current value. As you can see most of the land lords have relatively static rents with one or two increasing their average rents over the period.

Comparing the Categories

So which of the retail categories are paying the most. When comparing the chart below with its historical counter-part it's clear that the relative rents for each of the different categories is similar now to what it was in our past analysis. However, there has been a moderate overall increase in rents.

Lease Expiries Coming Up

One of the ways that clients use the RIS service is to identify lease space that many be coming free in the immediate future based on the lease expiry dates. In the centres that we cover, almost 850 leases will be coming up for expiry in the next 12 months, with the next five months being the most active time of the year.

Please Forward

This update is a free service provided by EPS to keep you updated about leasing and retail technology. Please forward it on to other people you think may be interested. You can use this link to do so.

They can sign up for their own edition at our website.

Close

That's about it for this issue of the Leasing and Retail Technology News. If you have any questions or comments please give us a call on 02 9419 8356 or email us on info@eps.net.au.