BUNNINGS NAILS DOWN MORE LARGE FORMAT SPACES

Written on the 29 September 2015

BUNNINGS NAILS DOWN MORE LARGE FORMAT SPACES

BIGGER is better when it comes to hardware, with Bunnings stores repositioning and expanding their stores across Australia.

With demand for hardware goods growing across Australia, Bunnings are relocating to larger premises.

CBRE's Chris Parry says the expansion is unlocking opportunities to transform Bunnings into a large format business nationally.

"Across the country, Bunnings is moving from smaller format stores measuring 6,000sqm 9,000sqm to larger stores of approximately 14,000sqm 21,000sqm," Parry says.

"This is unlocking an opportunity for landlords to develop their ex-Bunnings freeholds into what often is a higher return."

Parry says Bunnings' need to compete with other hardware businesses like Masters is opening the door for new developments.

"The Sunbury Showroom development has proven to be a strong case study for retail repositioning, with Bunnings targeting larger footprints as part of the hardware race against Masters Home Improvement. This is leaving some of the older, smaller warehouses behind."

The Sunbury Showrooms at 85 Vineyard Road is a former Bunnings warehouse comprising 5,544sqm, now home to leading national retailers including The Good Guys, Total Tools, Repco and Godfreys.

Parry says the Sunbury area was an emerging destination for hardware retailers following Bunnings' departure.

"Bunnings relocated to the opposite side of the street, committing to approximately 13,000sqm, which further strengthens the precinct as a large format retail destination for Sunbury and the surrounds," Parry says.

"The subject property enjoys an estimated catchment of approximately 85,000 people, which has a large format retail spend 11 per cent higher than the Australian average and 8 per cent higher than the Melbourne average.

Similar projects are currently underway in Maribyrong, where a number of retailers are moving into a former Bunnings warehouse.

CBRE is also pre-leasing the former Bunnings in Burleigh Heads, Queensland, which is also undergoing a repositioning.

Ultimately, Parry believes this is just the beginning of a huge trend nationally.

"With Bunnings expanding its footprint across Australia, we envisage there will only be more opportunities such as this in the growing large format sector," he says.

"This trend is evidence of retailers capitalising on growth in the hardware sector, with the repositioning of these stores unlocking significant value for retailers."

 


Latest News

THE STAR'S STUNNING ANSWER TO CROWN'S BARANGAROO

THE Star Entertainment Group (ASX:SGR), not to be outdone by James Packer's Barangaroo development across the ...

BRISBANE COAL TERMINAL REOPENS AFTER SHIPLOADER REPAIR

COAL loading has recommenced at New Hope's (ASX: NHC) Brisbane terminal today after repairs to its ship loader, w...

SUPERYACHTS OFFER UNTAPPED POTENTIAL AT COMMONWEALTH GAMES

SUPERYACHT Australia has devised a strategy to attract more superyachts to Queensland and capitalise on revenue op...

GDP FIGURES A 'WAKEUP CALL' FOR PARLIAMENT

THE GDP figures are an end-of-year wakeup call for Parliament about what lies ahead for the country, according to ...

Related News

HOW MCDONALD'S AUSTRALIA REDISCOVERED ITS INNOVATIVE SPIRIT

MCDONALD'S is such a ubiquitous part of the Australian landscape today that it is easy to forget how it change...

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter