Learning Center
Plans & pricing Sign in
Sign Out

Bulky goods retain popularity


									 P R E S S                R E L E A S E                                               CB Richar d Ellis (V) Pty Ltd
                                                                                          Licens ed Est ate Agent
                                                                                             AB N 15 083 694 357

                                                                                    Level 32, Ria lto North Tower
                                                                                               525 Collins Str eet
                                                                                           Melb ourne VIC 300 0

                                                                                             T 61 3 8621 3333
                                                                                             F 61 3 8621 3330

                                                                                               www.cbr u


 For further information:
 Please contact
 Stephen Thomas
 Associate Director
 61 3 8621 3466
Bulky goods retain popularity

Melbourne, Vic, (March, 2007)

Melbourne’s bulky goods sector hasn’t lost any of its appeal with construction poised to continue to set
records over 2008.

CB Richard Ellis Senior Associate Director Stephen Thomas said that bulky goods construction has been
growing by more than 10% per annum over the past few years with 142,451 sq metres built in 2005 and
131,454 sq metres built last year taking the total to 1,128,720 sq metres.

“Most of the new centres now being built are anchored by brand name quality tenants such as Harvey
Norman and Bunnings which tend to attract long term leases helping to sustain the ongoing success of
the centres.

“Still, despite the strong performance of this sector, bulky goods construction is expected to taper off this
year with 29,386 sq metres under construction and a further 49,000 sq metres proposed but in 2008
another record is in place with some 207,810 sq metres proposed of which 92,250 sq metres is already
under construction.

Mr Thomas said major new developments to come on stream over the next 18 months include the
45,000 sq metre Harvey Norman Bulky Goods centre at Springvale, the 44,000 sq metre
Spotlight/Harvey Norman centre at Frankston, the 40,000sq metre Nylex site development at Mentone,
the 50,000 sq metre centre at Southbank, Melbourne Exhibition & Convention Centre and the 24,000
Bulky Good centre in Gaffney Street, Coburg.

“Most of the bulky goods construction has been based in Melbourne’s south eastern market and this
trend is set to move to Melbourne’s northern suburbs in the latter part of the decade as this region is
relatively starved of substantial bulky goods centres, particularly in the emerging suburbs of Mernda and
                                                                                              5 April 2007

“Following remarkable rental growth since June 2000, bulky goods rentals have plateaued and are
expected to remain stable in the short term. Future rental growth will be driven by new developments with
the flow on affect to benefit existing centres. The average net rental is $173 a sq metre within a range of
$125 to $240 per sq metre.

Although construction has been growing at impressive rates and growth in rents has stabilised somewhat,
the vacancy remains historically low with the latest survey by CB Richard Ellis reporting vacancy rate of
0.14% compared to 1.92% two years ago.

“In line with low vacancies, yields have continued to firm over the past year to average 7.5% with
homemaker centres ranging between 7% and 8.25%,” he said.

Mr Thomas added that bulky goods turnover has remained positive with the household goods sector
being one of the strongest performers with total spending reaching $8.09 billion in the year to January

About CB Richard Ellis
CB Richard Ellis Group, Inc. (NYSE:CBG), a FORTUNE 1000 company headquartered in Los Angeles, is
the world's largest commercial real estate services firm (in terms of 2005 revenue). The Company serves
real estate owners, investors and occupiers through more than 350 offices (including affiliate and partner
offices) worldwide. CB Richard Ellis offers strategic advice and execution for property sales and leasing;
corporate services; property, facilities and project management; mortgage banking; investment
management; appraisal and valuation; and research and consulting. For more information, visit the
company’s Web site at ( or the US headquarters website at

                                                                                                     Page 2

To top