Colliers and Cygnet West are jointly bringing to market for sale, Joondalup Square, a single-level, open-air Large Format Retail Centre (LFR) located in Joondalup, 26 kilometres from the Perth CBD.
Joondalup Square is Perth’s shopping destination for furniture, home improvement, bedding, homeware, pet supplies and fitness servicing Perth’s Northern Corridor and growing population.
Constructed in 2013, the centre is positioned to capitalise on its trade area, encompassing Joondalup and the surrounding suburbs. This vast catchment extends 45 kilometres to the north and 10 kilometres to the south, tapping into a rapidly growing population base projected to reach 564,264 residents by 2041.
The centre offers convenient at-grade parking with 352 car bays and benefits directly from the foot traffic generated by the adjacent Bunnings, creating a one-stop large-format retail precinct in Perth’s north.
“Large Format Retail has recorded a 53 per cent increase in transactions highlighting the strong domestic and offshore investor interest for the resilient retail sub-sector. Despite this, Joondalup Square is only the second capital city LFR Centre to be publicly marketed in 2024, highlighting the tightly held nature of trophy centres of this calibre,” said Colliers head of retail middle markets Australia, James Wilson.
“Its intergration with Bunnings and prominent positioning makes Joondalup Square the best-located centre in a precinct that trades exceptionally well. The vacancy rate across Joondalup for this asset class is less than 3.5 per cent,” said Cygnet West’s partner in commercial agency, Wayne Lawrence.
The Centre boasts a robust mix of high-profile national retailers, featuring 14 large format retail (LFR) tenants and 5 specialty stores including but not limited to Amart Furniture, Beacon Lighting, PetO, Bedshed, Kitchen Warehouse, Forty Winks, Adore Home Living, and BBQ’s Galore.
“The buildings are fully committed but there is room for an additional 1,280 square metres with tenant offers in place,” said Lawrence.
The total trade area for Large Format Retail (LFR) spending is projected to increase significantly, reaching $2.3 billion by 2041, according to Location IQ. This growth is driven by several factors, including the robust economic conditions in Joondalup and Perth’s growing northern corridor, ongoing population growth, and increasing consumer demand for large-format retail options.
Large Format Retail investment volumes have significantly increased in 2024, reaching $352 million by the end of July, a notable 53 per cent rise compared to the same period in 2023 highlighting the strength of the retail sub-sector. Despite this overall growth, Western Australia has experienced only two deals since the beginning of 2023 highlighting the scarcity and tightly held nature of large-format retail opportunities in the state.
This opportunity to acquire Joondalup Square is being jointly marketed by Colliers and Cygnet West via an Expressions of Interest (EOI) campaign, closing on Thursday, 26 September 2024.
