It appears Retail is booming ?

This is slightly off topic but it's still on as I'm contemplating purchasing a commercial retail property.

Presently I'm living back in the Byron Bay Area.
In the main town area Developers have built a few new retail developments and a few restructures of larger shops made into smaller shops.
The retail area has spread to side streets,back streets . Some Office buildings are now retail .
Businesses are opening almost weekly . Mostly food and clothing ( not new for Byron).
It seems like everybody wants a shop in Byron .
This is confusing as I know approx how much it costs to set up even a small retail shop .
I know the high risk in signing long leases with high rents and outgoings.
I know how no owner can work every day all day .
All these business need to employ people .
I was forced to leave my long term retail shop in the centre of Byron only three years ago predominately due to the GFC.
I would often talk to some who remained after I left . The news was never very encouraging .
Trade had only picked up slightly . It was nothing like the old days .
What's going on?

I was living on the Gold Coast six months ago.
There has been a very impressive revamp to Pacific Fair and apparently other bigger shopping centres are to follow.
There is massive money being spent .
Developers and retailers most have a lot of faith in the retail market at present.
I fail to see why ?
Any thoughts .
Cheers

 

I'm of the belief that people are over "stuff" so to speak. They would rather spend their money on eating out or some kind of experience rather than more "stuff". Couple this with the rise of the internet which means people get educated before they buy and are often able to compare prices and features before they buy in store if they do at all and yes, it's really hard to peddle "stuff" and be profitable.

Still many profitable retail businesses but these days it really needs to be a fresh concept rather than just the old mentality of build it and they will come.

 

Agree to some point .
Does not explain all the new retailers jumping in at Byron .
A few new concepts but mostly it's all much the same as catering to wants of cumsumers .
The demand is so high I can't even get a pop up shop .
Landlords don't have to wait long here to sign up a lease.

 

Cashed up locals bored with not working?

 

Byron is booming.. Plenty of cashed up baby boomers riding high on huge local price booms looking for somewhere to spend up.

 

Not sure if the new retailers are mostly local , what's a local in Byron anyway ?
A lot of long term residence have left to
Live in quieter or cheaper areas.
Mostly surrounding towns such as Lennox or Brunswick .
Baby boomers are not exactly the market that most of these retailers are appealing to.
For sure Byron seems to be the flavour of the month again with a new set of tourists .
There are more back packers than ever before but they don't Clothing At prices $200 and upwards.
They eat in the cheaper cafes , the don't spend $30 for breakfast every day.
A lot of Gold Coast and Brisbane folks are coming down for a sea change short break away.
A holiday in Byron unless it's a stay with Airbnb (it's flourishing in Byron)or at backpackers is not a cheap holiday .

 

We're from Sydney, we did a drive up to Byron 2 years ago, stayed at the YHA. Partner wanted to spend up big on food @breakfast lunch and dinner though, every meal! (Ps. Better food there than where we are at).

So there are definitely travellers like that. Middle aged/Gen X, don't care about budget and happily spend on food.

 

I think it's a valid question. Why boom in Byron and how long it would last. My wife and I travelled there some 18 years ago on a budget (YHA) and cook our own meals. My impression of that place was that it's reliant on tourism and over passage of time, the area becomes a holiday destinations for the well-off who bought up houses, inspired by celebrities. Has it become like Noosa?

Retail in Sydney is kinda depressing. Very competitive. Cafes open and they close. Restaurants too. Retail in Sydney is very tough.

I think independent shops face tough competition from the established brands on marketing expenditures, prices etc.

I think a clearer analysis should be undertaken before you jump into it. Certain businesses may have greater confidence in the area than others.

My 2 cents.

 

Imagine how much it would have cost if you paid hotel rates.
For sure Byron is a foodies paradise .
Having said that value for money ...haven't found much Lately.
I'm unimpressed with a lot of the food outlets .
Typical tourist town a few gems ( sometimes not obvious ) but most in the main drag are catering to tourists .
People have to eat . The competition has got to
Be tough still it's difficult to get a table of a night at popular outlets on WEs and all the holidays.
Breakfast , well same story. I don't bother in the busy times.
Things have changed ! Byron was always busy for a small town but it's madly busy now.

 

I was in Noosa during the quieter time of year . It was very busy but my hunch was mostly Brisbanites . I saw many new businesses in Hastings St since last visited but Noosa unlike Byron cant expand the tourist retail area.
Byron is a different town , it's more like a new age Bondi .

It's easy to get an unrealistic perception of general retail here .
Having said this the Gold Coast has revamped a popular shopping mall. It looks amazing with the best latest traders such as H&M.
It's thriving .
Other malls on the GC to follow with upgrades.
Same with Brisbane .
They must be very confident to be spending this kind of money.

 

They may have done their research. What's your research based on when buying CIP?

 

I'm certain they have done research.
Not bought commercial before except years ago an industrial unit in Byron off the plan with a local builder.
At the time bought for our own usage .
Partner wanted to sell too soon.
It was an excellent investment , I couldn't convince him.
My experience has been with residential . Cheers