The document summarizes trends in the Australian retail sector from 2008-2013. Retail sales and consumer sentiment increased steadily from the global financial crisis. Major developments included $7 billion in new construction projects, growing foreign investment reaching $3 billion by 2012, and stable commercial real estate yields entering 2013 with record low interest rates supporting consumer spending. The key takeaways were continued confidence in the Australian retail market from developers, retailers improving strategies as international retailers expanded, and a stable economy with population growth.

1. THE NORMALISATION
OF RETAIL
Michael Bate
Head of Retail
Colliers International

2. CONSUMER
SENTIMENT
1990
90 1995
95 2000
00 2005
05 201010 2013
Retail Sales (LHS) Consumer Sentiment (RHS)

3. THE RETAIL
ENVIRONMENT
Retailer Retailer Xmas/ Online International Domestic
reporting failures January Opportunity retailers retailers
Surprised on The worst trade not a threat. Australia is an Expanding
the upside. is over? Little impact attractive offshore.
from interest proposition.
rate cuts.

4. DEVELOPMENT
ACTIVITY
$150M

5. DEVELOPMENT
ACTIVITY
$1.3B

6. DEVELOPMENT
ACTIVITY
$650.0M

7. DEVELOPMENT
ACTIVITY
$200.0M

8. DEVELOPMENT
ACTIVITY
$1.95B

9. DEVELOPMENT
ACTIVITY
$2.0B

10. DEVELOPMENT
ACTIVITY
$2.0B

11. DEVELOPMENT
ACTIVITY
$ 7 +billion

12. THE INVESTMENT
ENVIRONMENT
OUTLOOK

13. AUSTRALIAN RETAIL SECTOR
INCOME YIELDS
Super & Major Regional
15 1996 to 1998 Regional
14 Sub-Regional
13 Neighbourhood
10 Yr Bonds 2008 to 2012
12
11
10
9
% p.a.
8
7
6
5
4
3
2
Dec-87
Dec-88
Dec-89
Dec-90
Dec-91
Dec-92
Dec-93
Dec-94
Dec-95
Dec-96
Dec-97
Dec-98
Dec-99
Dec-00
Dec-01
Dec-02
Dec-03
Dec-04
Dec-05
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Dec-12
Source: Colliers International Research/Deloitte Access Economics/IPD

14. Neighbourhood
8.2%
DEC
12

15. Sub Regional
7.8%
DEC
12

16. Regional
7.0%
DEC
12

17. FOREIGN INVESTMENT
RETAIL DATA
$1,458b
$698m
$458m
$132m
$19m
2008 2009 2010 2011 2012

18. FOREIGN INVESTMENT
RETAIL DATA
$3BILLION
worth of offshore capital
looking to invest
in Australian retail in
2013

19. Investment Consumer
Stable yields Confidence
entering 2013 Lowering interest rates
10 year bonds at an Consumer spend
all-time low
THE KEY
Foreign investment at
an all-time high
TAKEOUTS
Developer Retailer
Confidence in the market Improved strategies
Affordable capital Consumer spend
Stable economy with International retailers
a continued pop grown

20. THE NORMALISATION
OF RETAIL