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MCU10/2083 Development Application part 2 - Attachment 4 - Economic Impact and Need Assessment
THE HIVE AT NOOSAVILLE
CONVENIENCE CENTRE
ECONOMIC IMPACT AND NEED ASSESSMENT
Client:
Marquette Properties
Prepared by:
ABN 59 111 542 673
Suite 31, Level 4
50-56 Sanders Street
UPPER MT GRAVATT, QLD, 4122
Ph: (07) 3422 2011
Fax: (07) 3422 0899
October 2010
10034 Rev 1
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CONTENTS SUMMARY ........................................................................................................ III 1 INTRODUCTION......................................................................................... 1 1.1 Purpose and methodololgy ..........................................................................................................1 2 RETAIL NETWORK.................................................................................... 4 2.1 The Noosa Plan.............................................................................................................................4 2.2 Existing centres.............................................................................................................................4 2.2.1 Discount department store based centres...................................................................................4 2.2.2 Major supermarket based centres ..............................................................................................6 2.2.3 Neighbourhood centres..............................................................................................................8 2.2.4 Tourist retail areas .....................................................................................................................8 2.3 Proposed developments................................................................................................................9 2.4 Summary .....................................................................................................................................10 3 MARKET FUNDAMENTALS .................................................................... 12 3.1 Trade area defined .....................................................................................................................12 3.2 Resident market..........................................................................................................................12 3.2.1 Forecast population growth and household formation trends ..................................................14 3.3 Socio-economic characteristics..................................................................................................16 3.3.1 Retail spending implications....................................................................................................19 3.4 Resident retail expenditure potential........................................................................................19 3.4.1 Average household retail expenditure .....................................................................................19 3.4.2 Total household retail expenditure ..........................................................................................20 3.5 Visitor market.............................................................................................................................22 3.5.1 Visitor accommodation............................................................................................................22 3.5.2 Visitor expenditure ..................................................................................................................24 3.6 Total expenditure potential .......................................................................................................25 4 CENTRE PERFORMANCE AND IMPACT ............................................... 27 4.1 Centre performance prospects ..................................................................................................27 4.1.1 Tenancy mix ............................................................................................................................27 4.2 Centre market shares and turnover forecasts .........................................................................28 4.3 Impact analysis ...........................................................................................................................30 Noosaville Convenience Centre EIA 10034 Rev 1 19 October 2010 i
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4.3.1 Economic impact defined ........................................................................................................30
4.3.2 Amount and distribution of impacts ........................................................................................31
4.3.3 Amelioration of impacts ..........................................................................................................33
5 NEED AND IMPACTS............................................................................... 34
5.1 Need.............................................................................................................................................34
5.2 Impacts ........................................................................................................................................35
5.3 Other community benefits .........................................................................................................36
5.4 Conclusion...................................................................................................................................36
APPENDIX A.................................................................................................... 38
Visitor market ...........................................................................................................................................38
APPENDIX B ................................................................................................... 41
Expressions of interest..............................................................................................................................41
Disclaimer
The sole purpose of this report is to provide Marquette Properties (the Client) with information
in accordance with Foresight Partners Pty Ltd’s scope of services set out in its proposal to the
Client.
Foresight Partners has relied upon information relevant to this report provided by government
agencies, the Client and others. Except as otherwise stated in the report, Foresight Partners has
not attempted to verify the accuracy or completeness of such information.
The assumptions underlying the findings, observations, forecasts and conclusions presented in
this report are subject to significant uncertainties and contingencies. Therefore, actual results
may differ significantly from forecast results. Foresight Partners do not make or imply any
warranty or guarantee with respect to the data reported or to the findings, observations,
forecasts and conclusions expressed in this report. Foresight Partners cannot confirm or
guarantee achievement of any forecast growth or performance, as future events, by nature, are
not amenable to independent confirmation or substantiation.
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Summary
Marquette Properties is proposing to develop a 915m² convenience retail
centre, ‘The Hive at Noosaville, on the southwest corner of Gibson Road and
Skipper Place in Noosaville, Sunshine Coast. The proposal will be anchored by
a convenience store and be complemented by a mix of convenience oriented
tenants. In light of its role and function, the proposal will operate for extended
trading hours.
Retail network
The site is diagonally opposite the western end of the Noosaville Business
Centre, which extends east for around 500 metres. The Noosaville Business
Centre consists of three key components – Noosa Village, Noosa Homemaker
Centre and showrooms. The traditional supermarket at Noosa Village provides
for major chore food shopping needs.
To the north of the site is the Noosaville Visitor Mixed Use Zone along and
near Gympie Terrace, which contains a diverse mix of restaurants and cafes
with relatively high price points. It largely caters to the visitor market.
Overall, there is a clear deficiency in convenience retail facilities in Noosaville
with a need for local facilities that have extended hours of operation to serve
the local resident and visitor population, and provide a greater choice of food
and beverage facilities.
Market fundamentals
The forecast primary trade area encompasses residents within an approximate
one kilometre radius from the subject site. The Noosa River acts as a natural
barrier to the north and east. To the south, the trade area extends to Shorehaven
Drive and west to Eumundi Road. The secondary trade area includes the
residential pocket west of Eumundi Road and south of Shorehaven Drive.
The population of the forecast trade area at June 2010 is estimated at 4,700
people in 2,110 dwellings. The trade area population is forecast to increase to
4,800 people by June 2013 (the assumed first full year of trading for the
proposed new centre), 4,870 people by 2015 and 4,940 people by June 2017.
Trade area households currently generate $59.4 million in retail sales potential.
Between June 2010 and June 2013, the assumed first full year of trading for the
proposed new centre, population growth will increase this pool of available
retail spending by $2.6 million. By 2017 (fifth year of trading) a further $4.0
million will be available.
There are a total of 40 visitor accommodation establishments collectively
comprising over 1,000 rooms within the defined trade area that host an
estimated 442,800 visitor nights annually. The current pool of expenditure
from domestic, international and day trip visitors within the trade area is $32.6
million for food and drink and shopping items. This is forecast to increase to
$33.6 million by 2013 and $35.0 million by 2017.
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Centre performance
Forecast market shares achievable by the proposed centre (4.8% of total trade
area retail expenditure) produce a centre turnover of $4.5 million, of which
$1.6 million would originate from external sources (e.g. visitors to the area) at
June 2013. The centre’s projected overall productivity (sales per square metre)
is $5,647m² at its first full year of trading.
Impacts
The Noosaville convenience retail centre is forecast to capture less than 5% of
all spending from trade area residents and visitors. The forecast maximum
impact is less than 2% on the Noosaville Business Centre. As such, forecast
impacts upon competitive centres will not jeopardize their vitality or viability,
or threaten their functional roles and levels of service they currently provide to
the community. The increase in available spending should enable affected
centres to recoup most of their impacts within a year or two.
Need
Need for the subject proposal is demonstrated by the following:
• The local area has a substantial number of residents and visitors.
• The local area is undersupplied with convenience retail facilities.
• There are no alternative locations for such facilities available in
Noosaville and greater Noosa.
The proposed centre should also generate beneficial impacts, such as:
• providing trade area residents with greater choice and variety of shops
and food services with extended operating hours;
• introducing more affordably priced food and beverage services;
• enhancing competition in pricing and service;
• providing ease of accessibility with ample parking in light of high
vehicle mobility of local residents;
• providing facilities within walking distance of many trade area residents
and visitors, thereby generating savings in travel time and costs; and
• providing additional local employment, generating the full-time
equivalent of approximately 40 to 50 employees.
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1 Introduction
Marquette Properties is proposing to develop a 915m² convenience retail
centre, ‘The Hive at Noosaville’, on the southwest corner of Gibson Road and
Skipper Place in Noosaville, Sunshine Coast. The 3,860m² site is zoned
‘Residential’ under the Noosa Plan (Lot 1 RP802167). Previously the subject
site has been used as a nursery. An existing commercial use would be replaced
with the proposed convenience retail centre.
The proposal is intended to serve as a convenient and easily accessible
shopping destination. The proposed mix of tenants will be convenience
oriented and thereby complement the existing range of uses in the surrounding
area. It proposes to contain eight tenancies ranging in size from about 70m² to
170m², anchored by a convenience store. Approximately 100m² of additional
area will be provided for alfresco dining. Ingress and egress will be on Gibson
Road and Skipper Place. Parking for 67 cars will be provided. In light of its
role and function, the proposal will operate for extended trading hours (Figure
1.1).
1.1 PURPOSE AND METHODOLOLGY
Foresight Partners Pty Ltd was commissioned by Marquette Properties to assess
the market feasibility, community need and economic impact implications of
the proposed new centre. The three key objectives of this economic impact
assessment are to:
• determine if the proposed convenience centre has reasonable market
prospects;
• evaluate the economic impacts of the proposed centre development
upon the existing and likely future retail network serving the
surrounding area; and
• assess whether there is a community need and planning need and
demand for the proposed convenience centre.
Investigations were carried out in four main areas—the competitive
environment, market fundamentals, centre performance and network impacts.
Market fundamentals included:
• A determination of the centre’s likely trade area based upon the location
and function of competitive centres, the road network and other factors.
• A review of population growth and household formation trends within
this trade area. Forecasts of future population and households were
produced based on population forecasts prepared by the Population
Information and Forecasting Unit within the Office of Economic and
Statistical Research. Forecasts were prepared for the proposed centre’s
first, third and fifth years of trading. The extended centre’s first full
financial year of trading is assumed as the year ending June 2013.
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• Socio-economic characteristics of the trade area’s population which
were compiled from the 2006 Census and interpreted in terms of retail
demand and propensity to spend on various goods and services.
• Estimation of the pool of retail expenditure potential available from
trade area households and visitors at June 2010 (the base year for this
analysis) and forecasts of how this pool will increase (in constant 2009
dollars) over a seven year period to June 2017.
An assessment of the competitive environment in the surrounding area
included a reconnaissance of retail and other uses in Noosaville, Noosa
Junction, Noosa Heads, and Tewantin.
The new centre’s likely performance prospects (centre turnover) were
estimated through a market share analysis, with turnover forecasts prepared
for its first, third and fifth years of operation.
Implications of the proposed centre’s impacts upon existing centres are
discussed, together with the prospects for the amelioration of these impacts
over time. Community and planning need and demand for the centre are
then discussed.
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Figure 1.1
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2 Retail Network
This chapter provides an overview of the existing network of centres currently
serving Noosaville and the surrounding localities of Noosa Heads and
Tewantin. It also describes Noosa’s Commercial and Retail Development
Strategy.
2.1 THE NOOSA PLAN
The Noosa Plan (2006) corresponds to the former Noosa Shire. It outlines the
scale and functions of the centres and zones within the former local
government area (hereafter referred to as Noosa Shire):
Business centres are designed to accommodate significant retail, commercial,
entertainment, dining and community uses. They incorporate some higher
order retail and other services; however the facilities and services offered
through the business centres are not meant to detract from the Shire Business
Centre (SBC). The Planning Scheme identifies Business centres at Noosa
Junction, Noosaville, Tewantin and Cooroy.
Neighbourhood or Visitor Centres are where the day-to-day retail needs of
Noosa Shire residents and visitors can be met. They are found in the urban,
developed pockets of the Shire at Peregian Beach, Sunrise Beach, Sunshine
Beach, Noosa Heads, Noosaville and Tewantin. Rural neighbourhood-visitor
centres are designated at Cooroibah and Teewah.
The Village Mix Zone includes a range of business and commercial uses to
accommodate the immediate needs of residents and visitors in rural villages in
the Shire.
The Visitor Mixed Use Zone is primarily comprised of small retail and
business outlets rather than branded chain stores and includes a wide range of
entertainment and dining, retail, and commercial services that are of interest to
visitors. The primary Visitor Mixed Use Zone in the Shire is at Hastings Street
with the Gympie Terrace area in Noosaville also recognised as part of this
zone.
2.2 EXISTING CENTRES
The existing centres most relevant to the proposal are discussed in terms of
scale, function and location. Figure 2.1 shows the locations of these centres.
2.2.1 Discount department store based centres
Stage 1 of Noosa Civic, which opened in October 2006, is an 18,670m² retail
centre anchored by a 6,464m² Big W discount department store and a 3,500m²
Woolworths supermarket, with approximately 80 specialty shops. It is the
dominant feature of the SBC, which also includes the 7,060m² Emporium retail
showroom centre and 5,008m² of commercial office space. The 7,440m²
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Page 11
Business Park comprising two and three storey buildings has formed the second
stage of development. Noosa Civic is the largest retail centre in Noosa Shire. It
provides the region’s highest order retail goods including apparel, homewares
and bulky goods items. It also includes a small selection of fast food,
restaurants and cafes including a Chinese takeaway, Sushi bar, sandwich and
juice bar, Red Rooster, Subway, Sunshine Kebabs, Donut King, Jamaica Blue,
and The Coffee Club. As all retailers are located within the centre itself, they
only operate during normal centre trading hours. The Noosa Civic Tavern is
located on the western end of the centre.
2.2.2 Major supermarket based centres
Three of Noosa Shire’s four Business centres are anchored by major chain
supermarkets, although each has attributes that differentiate them and their
function.
Noosaville Business Centre
The Noosaville Business Centre is located primarily on Mary and Thomas
Streets, Noosaville and has three key components: Noosa Village, Noosa
Homemaker Centre and showrooms.
The 4,414m² Noosa Village centre is anchored by a 2,582m² Woolworths
supermarket. Its reported turnover in the 2009 Shopping Centre Directory was
$63 million, indicating that the centre is performing exceptionally well. Noosa
Village is the only supermarket anchored centre within the Noosaville area and
therefore provides residents with their chore food and top-up shopping needs. It
operates until 9pm weeknights and 5pm/6pm on weekends. The supermarket is
complemented by a range of specialty shops that include some take home food,
apparel, household goods, and personal and professional services. Meals out /
take away food retailers are limited to a café and Donut King.
Immediately to the west of Noosa Village separated by Dan Murphy’s and the
Villa Noosa Hotel, is the Noosa Homemaker Centre, a retail showroom–bulky
goods centre of 22 tenancies. The Noosa Homemaker Centre has a wide range
of tenants. There are two fast food retailers within the development; Dominos
Pizza (open daily from 10.30am to midnight and until 1am Friday and Saturday
nights) and a 24 hour McDonalds. However, accessibility to the McDonalds is
constrained with only one access point off Thomas Street through the
Homemaker Centre carpark.
Another retail showroom centre is located east of Noosa Village. This centre is
anchored by a large Harvey Norman store and has 22 other showroom
tenancies. Gibson’s Homewares is another of the tenants which operates a deli
and is open weekdays from 8am to 4pm and Saturdays from 8.30am till
3.30pm.
In addition to the three retail centres, there are a number of other businesses
located within the Noosaville Business Centre, predominantly located along
Mary Street. A BP service station is situated on the corner of Weyba Road and
Mary Street on the eastern fringe of Noosaville. While the petrol station
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operates 24 hours, its convenience store is open until 9pm and has a limited
product mix. There are also a number of professional services including real
estate agents, a medical centre, and a handful of local businesses (e.g.
accountants and solicitors), as well as the China Jade Restaurant in the local
area.
The Noosaville Business Centre caters mainly to resident, rather than visitor,
major chore food and comparison shopping needs. The Noosaville Business
Centre appears to be functioning well, with very few vacant shops observed.
Noosa Junction Business Centre
This retail and commercial centre is located at the intersection of Sunshine
Beach Road and Noosa Drive and is dominated by the Noosa Fair and Noosa
Junction shopping centres.
Noosa Fair is a 7,913m² shopping centre anchored by a 3,766m² Coles
supermarket and about 25 specialty shops. It is the dominant centre within the
business centre area and appears to be trading exceptionally well, mainly due to
the trading strength of the Coles supermarket. In 2009, the centre’s turnover
was reported at over $61 million (source: Property Council of Australia’s
Queensland Shopping Centre Directory, 2009).
Noosa Junction Plaza, a centre of 4,756m², is anchored by a 2,155m² Supa IGA
supermarket. Observations of this centre since it was built (1987) suggest that
it has struggled and has rarely been fully let. Its current anchor tenant, Supa
IGA, was previously an Action Supermarket, which had replaced the original
anchor, Franklins Fresh supermarket.
A number of smaller retail developments and strip retailing combine to make
Noosa Junction a strong retail destination, offering over 270 shops and
professional services in over 40,000m² of floor space. It includes the Shire’s
only multi-screen cinema complex as well as a range of cafes, restaurants and
gift shops. In addition to catering to the major supermarket, day-to-day
convenience needs and some comparison shopping, the Noosa Junction
Business Centre also caters to Noosa’s visitor market.
However, the centre’s location in Noosa Heads, some 3.5 kilometres east of the
subject site, makes it relatively inconvenient as a convenience shopping
destination for Noosaville residents and visitors.
Tewantin Business Centre
The Tewantin Business Centre is focused on the strip retail and commercial
developments on Poinciana Avenue. It functions as a small town centre
offering mainly convenience shopping, but also professional services,
commercial offices and a pub. It adjoins Noosa Shire’s offices, art gallery and
jetty. In light of its position relative to Noosaville, it would mainly serve
residents and visitors in Tewantin.
The Council’s investment in streetscape improvements have helped transform
and revitalise the Tewantin Business Centre area and it now attracts locals and
visitors with its range of cafes and restaurants.
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The newest development is Poinciana Place, a 2,874m2 centre that was
refurbished in mid-2006 and is now anchored by a 2,178m² Woolworths. It
provides the next nearest full-line supermarket to the west of Noosaville. The
open air strip mall provides a small range of specialty shops that include some
professional services, a gym, butcher, clothing store, Subway and Gloria Jeans
café. Three small and older retail developments (Tewantin Plaza, The Cooloola
Centre and The Atrium) and other street front shops and services line Poinciana
Avenue.
There is a small selection of fast food shops located on Memorial Drive with
tenants comprising a House of Chooks, Pizza Capers, Kebabylon Fresh, Eagle
Boys and Kiku Takeaway. Most of these outlets open at lunch time (generally
from 12pm-2pm) and then for dinner (from 4.30pm-10pm).
2.2.3 Neighbourhood centres
There are a several retail and commercial centres that cater for the immediate
and everyday needs of the local community. Most are anchored by
independent supermarkets and grocery stores. The following is a summary of
local-scale retail facilities in the area.
• Aldi opened a store along Weyba Road in late 2007. Adjacent to Aldi is
a small retail development comprising a bakery and café, Thai
restaurant, bookstore, Organika café and produce, and Legends Bar and
Grill. On the opposite side of Aldi, there is also a small convenience
store of about 100m² selling basic groceries and newspaper items.
• The Noosa Wharf Shopping Centre at Quamby Place is a small centre
located amongst tourist accommodation at Noosa Sound. This centre
has a 180m² 7-2-7 supermarket and is mainly made up of high end
restaurants. The centre did not appear to be trading well with five
vacancies observed.
• Bushlands Shopping Centre is a small convenience centre anchored by
a Spar Express of around a 150m². Other tenants include a liquor store,
hairdresser, second hand clothing store and bakery. The Spar Express is
open from 6.30am to 8pm seven days per week. The catchment of the
store is confined to the Noosa Bushlands estate.
• Noosa Outlook Shopping Centre is located along St Andrews Drive. It
is anchored by an IGA supermarket (around 600m²) and is
complemented by 13 specialties including a butcher, bakery, solicitor,
beauty salon, hairdresser and medical centre. The centre would mainly
cater to residents in the residential pocket south of Cooroy-Noosa Road.
2.2.4 Tourist retail areas
The predominant tourist retailing in the Northern Sunshine Coast region is the
Visitor Mixed Use Zone of Hastings Street, Noosa Heads. The Hastings Street
area enjoys an iconic status as one of Australia’s most famous and popular
beach destinations. There are over 150 retail and commercial premises within
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the Hastings Street area and it is dominated by cafes and restaurants, take away
shops, boutique resort and other fashion and gift shops. The Hastings Street
precinct had a total of 13 vacancies.
The second major tourist area in Noosa Shire is the Noosaville Visitor Mixed
Use Zone. It is the most relevant of the tourist retail areas given its location
relative to the subject proposal. Located on Gympie Terrace fronting the Noosa
River, this zone is primarily composed of cafes and restaurants with some
higher order apparel retailing. There were two vacancies evident along Gympie
Terrace.
The vast majority of restaurants and cafes in this precinct are of high-end
quality. There is however a small clustering of eateries on Thomas Street
providing some fast food. These include a Red Rooster, Zachary’s Pizza Bar,
Magic of India, Raymondo’s Gourment Pizza and Nosh It. Apart from the Red
Rooster (operates daily from 9.30am-9.30pm and 10.30pm Friday and Saturday
nights), operating hours are fairly restricted with the eateries generally opening
only for dinner.
In terms of convenience shopping, there is one convenience store of about
100m² along Gympie Terrace. The store has a narrow product line providing
only basic convenience items, such as bread, milk, cold drinks, chips, and some
toiletries.
The most recent development within the Noosaville Visitor Mixed Use Zone
has involved a boutique-style development on the corner of Thomas Street.
With the exception of the ice-creamery (and one vacant shop), all other six
tenants are high-end retailers and include Zambeze and Skaagen Denmark. This
further highlights the role of Gympie Terrace as a tourist and leisure
destination.
The Noosa Marina also provides a diverse range of restaurants and cafés. In
total, there are around 16 tenancies, four of which were vacant upon inspection.
Additional tenants include a hairdresser, footwear, spa, and gallery and
homewares store. The majority of restaurants offer fine dining.
2.3 PROPOSED DEVELOPMENTS
Enquiries with Sunshine Coast Regional Council in August 2010 have
identified a number of planned and proposed retail developments within the
Noosaville, Noosa Junction, Noosa Heads and Tewantin area:
• The largest application involves the expansion of Noosa Civic. Stage 3
of the proposal totals 35,000m² of lettable retail and commercial use
area and would introduce a two level department store, a second major
supermarket, a second discount department store, a number of mini-
majors, additional retail specialty shops (8,000m²) and two levels of
professional services and commercial office space (5,000m²). The
application is currently subject to Court Appeal.
• As part of the Noosaville Homemaker Centre, there is an approval to
utilise part of the existing carparking area located along the northern
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portion of the site for a night and weekend market. The area is to be
cordoned off for a maximum of 76 stalls to operate in the area. The
market is to operate every Friday and Saturday night from 4pm till 9pm
and Sunday from 7am till 1pm.
• There is an approval to establish a retail/commercial development at 84
Poinciana Avenue in Tewantin. The development is to comprise seven
tenancies totaling 809m². Tenancy one is to be utilised by a restaurant
(136m²) and tenancies two to five utilised for retail uses with an
average area of 90m² each. Tenancies six and seven are to be located on
the upper levels and used for office and/or medical purposes (222m²).
• An application to establish a Trade Supplies Store within an existing
building, currently unoccupied and previously used for an indoor sports
centre has been approved. The building on 30 Rene Street in Noosaville
has a floor area of 930m².
• There is a proposal for the conversion of an existing upper floor office
at 28 Hastings Street, Noosa Heads to a shop (123m²).
• An approval to convert a medical centre into a Noodle Bar at 28 David
Low Way in Noosa Heads has been approved.
• An application for the fit-out of a dental surgery at Quamby Place in
Noosa Heads has been approved.
In light of the locations of the proposals, all are likely to serve different
catchments, with the exception of Noosa Civic which would serve a broad and
overlapping catchment to the subject proposal.
As the subject development represents the only convenience-type centre
proposed within the Noosaville, Noosa Junction, Noosa Heads and Tewantin
area, it would therefore serve a largely distinct role and function to all of the
existing and proposed retail facilities. Moreover, it would address the shortage
in convenience retail facilities. Like all of the proposed developments, it would
represent only a minor increase in the future retail provision of Noosa Shire.
2.4 SUMMARY
A reconnaissance of the retail network in the Noosaville area indicates the
following:
• There is a lack of convenience retail facilities within the area,
particularly those that operate extended trading hours and are
convenient to Noosaville residents and visitors.
• There are few moderately priced food services in the local area.
• The only supermarket in Noosaville is estimated to be trading well
above average and the centre in which it is located (Noosa Village) has
no vacancies.
• Existing shops and food outlets on Gympie Terrace mainly cater to
higher price points and are not within a walkable distance for many
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Noosaville residents and visitors. Furthermore, parking is a major
constraint around Gympie Terrace, limited to on-street parking only.
• The broader Noosa area in general is underserved by convenience-type
centres but more importantly there are no convenience-type centres in
the local area that have provision for a convenience store, food and
beverage services within walking distance of local residents and visitors
in Noosaville, and that also provide adequate parking.
These characteristics indicate a very limited provision of convenience retail and
food service facilities in Noosaville compared to the range of convenience
facilities that are typically available to residents in urban areas, and to visitors
in significant tourism areas.
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3 Market Fundamentals
This section sets out the proposed Noosaville convenience retail centre’s trade
area characteristics, population and household growth prospects and retail
expenditure available from the resident and visitor markets.
3.1 TRADE AREA DEFINED
The proposed Noosaville convenience retail centre’s trade area was defined and
segmented into a primary and secondary trade area based upon:
• the expected size, composition and function of the proposed centre;
• the location and function of existing competitive centres;
• the road network and barriers to movement including national parks and
canals; and
• Census collector district boundaries.
The primary trade area encompasses residents within an approximate one
kilometre radius from the subject site. The Noosa River acts as a natural barrier
to the north and east. To the south, the trade area extends to Shorehaven Drive
and west to Eumundi Road.
The secondary trade area comprises a more contained area located to the west
of the primary trade area. It includes the residential pocket west of Eumundi
Road and south of Shorehaven Drive.
Figure 3.1 shows the defined trade area expected for the proposed Noosaville
retail centre.
3.2 RESIDENT MARKET
Table 3.1 sets out the resident population and households for the main trade
area at 2001, 2006 and 2010, as well as forecast population and households for
2013 to 2017. Population and household data were compiled from the
Australian Bureau of Statistics (ABS) 2001 and 2006 Census and dwelling
approval data from the ABS for July 2001 to June 2009.
• In 2006, the trade area had an estimated 4,558 persons residing in 2,026
dwellings.
• Currently, the trade area is estimated to have a resident population of
4,700 people in 2,110 dwellings.
• This increase over the last four years represents an average annual
growth rate of 0.8%.
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Haasstiti
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trtreeeett
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Poinciana Place
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Subject Site
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Noosa Outlook
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Noosaville
Noosaville
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Bushlands
Shopping
Shopping
Centre
Centre
RD
R D
D
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Secondary E
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Figure 3.1: Noosaville Convenience
Noosa
Noosa Civic
Civic
Retail Centre Forecast Trade Area
Subject Site
Discount department store
anchored centre
Supermarket anchored centre
Neighbourhood Centre
Bulky Goods / Retail Showroom
´
Retail Strip
Primary Trade Area
´
Secondary Trade Area
Page 19
3.2.1 Forecast population growth and household formation trends
The population projections are based on information gathered by Foresight
Partners on the available supply of land for residential development, as well as
medium series population forecasts by PIFU.
The trade area’s population is forecast to increase from an estimated 4,700
people at June 2010 to:
• 4,800 people by June 2013 (assumed first full year of trading);
• 4,870 people by June 2015; and
• 4,940 people by June 2017.
Forecast growth within the trade area is likely to be modest, reflecting the
area’s maturity. Over the seven year forecast period, the trade area will gain
about 240 new residents and around 150 additional households.
The majority of growth is projected to occur within the secondary trade area –
containing a large parcel on Eenie Creek Road destined for residential
development. In the primary trade area, projected growth will occur as part of
the proposed extension of Headlands Estate and infill development occurring
mainly around the canal.
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Table 3.1: Estimated population and households, proposed Noosaville convenience retail centre trade area, June 2001 to June 2017 Trade Areas 2001 Incr. p.a. 2006 Incr. p.a. 2010 Incr. p.a. 2013 Inc. p.a. 2015 Inc. p.a. 2017 Primary Population 3,358 31 3,515 19 3,590 13 3,630 10 3,650 10 3,670 Occupied dwellings 1,542 18 1,630 13 1,680 10 1,710 10 1,730 8 1,745 Persons per dwelling 2.18 2.16 2.14 2.12 2.11 2.10 Secondary Population 991 10 1,043 17 1,110 20 1,170 25 1,220 25 1,270 Occupied dwellings 368 6 396 9 430 10 460 15 490 13 515 Persons per dwelling 2.69 2.63 2.58 2.54 2.49 2.47 Total Population 4,349 42 4,558 36 4,700 33 4,800 35 4,870 35 4,940 Occupied dwellings 1,910 23 2,026 21 2,110 20 2,170 25 2,220 20 2,260 Persons per dwelling 2.28 2.25 2.23 2.21 2.19 2.19 Average annual growth 2001- 2006- 2010- 2013- 2015- rates 2006 2010 2013 2015 2017 Population (%) 0.9% 0.8% 0.7% 0.7% 0.7% Households (%) 1.2% 1.0% 0.9% 1.1% 0.9% Source: ABS 2001 and 2006 Census; dwelling approval data; ABS Regional Population Growth 2010; PIFU population forecasts – 2008 medium series; and Foresight Patners estimates. Noosaville Convenience Centre EIA 10034 Rev 1 19 October 2010 15
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3.3 SOCIO-ECONOMIC CHARACTERISTICS
Trade area socio-economic characteristics provide an indication of the capacity
of a population to support retail and other activities. Table 3.2 summarises key
socio-economic data for the defined trade area as at the 2006 Census.
The Sunshine Coast Statistical Division (SCSD—encompasses the local
government areas of Noosa Shire, Maroochy Shire and Caloundra City) and
Queensland are included as benchmarks for comparison.
Notable variations of key socio-economic characteristics between the trade area
and the regional and state benchmarks are summarised below.
Age Distribution
• The total trade area has an older age profile than the SCSD and
Queensland benchmarks, as evidenced by the higher proportion of
persons aged over 45 years (empty nesters) and correspondingly lower
proportion aged less than 45 years. These differences are clearer when
presented as age-sex structure pyramids (Figure 3.2).
• In particular, the primary trade area has a relatively older age profile
characterised by a higher proportion of persons aged 65+ (18.2%)
compared to the SCSD and Queensland (16.5% and 12.4%
respectively).
• Conversely, the secondary trade area has a more youthful population as
evidenced by a higher proportion of dependent children (19.8%) and
lower proportion of persons aged 65+ (14.0%).
Figure 3.2: Total Trade Area and Queensland Age-Sex Structure, 2006
100+
95-99 MALES FEMALES
90-94
85-89
80-84
75-79
70-74
65-69
60-64
55-59
50-54
45-49
40-44
35-39
30-34
25-29
20-24
15-19
10-14
5-9
0-4
6.0 4.0 2.0 0.0 2.0 4.0 6.0
Per cent of total population
Total Trade Area Queensland
Source: ABS 2006 Census.
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Family Structure
• Due to the age structure, the total trade area is dominated by couples
without children households (many of whom are empty nesters) at
40.1%. These contribute to a lower average household size of 2.31,
below the SCSD and Queensland (2.49 and 2.60 respectively).
• The proportion of couple only households is especially high in the
secondary trade area at 43.6% of all households. While the primary
trade area is also dominated by couples without children households
(39.4%), around one-quarter of its households are lone persons (25.3%).
Employment
• Employment characteristics differ notably within the total trade area
and Queensland. The older age structure of the area is reflected in the
lower workforce participation rates than Queensland (57.4% compared
to 66.3%) and fewer employed persons per household (1.1 compared to
1.3).
• Unemployment for the trade area (4.5%) as at the 2006 Census was
below the SCSD (4.7%) and above Queensland (5.7%). Unemployment
ranged from a low of 2.4% in the secondary trade area to 5.0% in the
primary trade area.
• More recent unemployment data as at the March quarter 2010 indicate
that the Noosa-Noosaville Statistical Local Area (comprising the total
trade area) had an unemployment rate of 7.6% compared to 5.6% in
Queensland.
Average Household Income
• Average household income in the total trade area is estimated at
$68,907 per annum (in 2009 dollar values), which is around 13% above
the SCSD average ($60,995) and on par with the Queensland average
($69,243).
• Average household income is higher in the secondary trade area
($74,626 compared to $67,687 in the primary trade area) reflecting the
higher workforce participation rate and lower unemployment rate.
Housing
• The total trade area has a lower proportion of detached/semi-detached
dwellings (81.8%) than the SCSD (86.5%) and Queensland (87.2%).
• The primary trade area has a notably higher share of attached dwellings
(20.0%) compared to all other areas highlighting the concentration of
retirees and correspondingly lower average household sizes.
• Dwelling ownership levels are higher in the secondary trade area
(67.9%) coinciding with higher average household incomes in the
secondary trade area.
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Table 3.2: Summary of selected socio-economic characteristics, 2006,
Noosaville convenience retail centre trade area
Primary Secondary Total Sunshine QLD
Coast SD
Age (%)
0-14 14.5 19.8 15.5 19.5 20.7
15-24 10.6 11.0 10.7 11.6 13.8
25-44 20.2 21.4 20.5 24.8 28.2
45-64 36.5 33.8 36.0 27.6 25.0
65+ 18.2 14.0 17.4 16.5 12.4
Household Type (%)
Couples with Children 22.5 29.9 23.8 28.1 31.5
Couples without Children 39.4 43.6 40.1 32.7 28.5
Single Parent Household 8.0 11.4 8.6 11.6 11.6
Lone Person Household 25.3 13.4 23.3 22.9 22.8
Group/Other Household 4.8 1.7 4.3 4.7 5.7
Employment (%*)
In labour force 57.1 58.6 57.4 60.8 66.3
Unemployed 5.0 2.4 4.5 5.8 4.7
White collar occupations 74.8 72.0 74.3 65.3 64.9
Employed per household 1.1 1.2 1.1 1.2 1.3
(No.)
Household Income (%)
$0-$26,000 22.8 16.1 21.6 23.7 20.6
$26,001-$52,000 28.9 30.4 29.2 31.2 27.2
$52,000-$104,000 31.5 31.5 31.5 33.7 35.6
$104,000 + 16.8 22.0 17.7 11.5 16.6
Average 2006 income $67,687 $74,626 $68,907 $60,995 $69,243
(2009 $ vals)
Dwellings (%)
Detached/semi-det 79.6 92.4 81.8 86.5 87.2
Flats/units 20.0 7.6 17.8 11.6 11.2
Caravan/other 0.5 0.0 0.4 2.0 1.5
Owned/purchasing 59.1 67.9 60.6 69.4 67.2
Mobility (%)
No vehicle 6.4 1.7 5.6 6.3 8.2
1 vehicle 47.3 38.7 45.8 40.3 37.8
2 or more vehicles 46.3 59.6 48.6 53.4 54.0
*Population aged 15+
Source: Australian Bureau of Statistics 2006 Census.
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Foresight
partnersptytta
Table 3.2: Summary of selected socio-economic characteristics, 2006,
Noosaville convenience retail centre trade area
Primary Secondary Total Sunshine QLD
Coast SD
Age (%)
0-14 14.5 19.8 15.5 19.5 20.7
15-24 10.6 11.0 10.7 11.6 13.8
25-44 20.2 21.4 20.5 24.8 28.2
45-64 36.5 33.8 36.0 27.6 25.0
65+ 18.2 14.0 17.4 16.5 12.4
Household Type (“%)
Couples with Children 22.5 29.9 23.8 28.1 31.5
Couples without Children 39.4 43.6 40.1 32.7 28.5
Single Parent Household 8.0 11.4 8.6 11.6 11.6
Lone Person Household 25.3 13.4 23.3 22.9 22.8
Group/Other Household 4.8 1.7 4.3 47 5.7
Employment (%*)
In labour force 57.1 58.6 57.4 60.8 66.3
Unemployed 5.0 2.4 4.5 5.8 47
White collar occupations 74.8 72.0 74.3 65.3 64.9
Employed per household 1.1 1.2 1.1 1.2 1.3
(No.)
Household Income (%)
$0-$26,000 22.8 16.1 21.6 23.7 20.6
$26,001-$52,000 28.9 30.4 29.2 31.2 27.2
$52,000-$104,000 31.5 31.5 31.5 33.7 35.6
$104,000 + 16.8 22.0 17.7 11.5 16.6
Average 2006 income $67,687 $74,626 $68,907 $60,995 $69,243
(2009 $ vals)
Dwellings (%)
Detached/semi-det 79.6 92.4 81.8 86.5 87.2
Flats/units 20.0 7.6 17.8 11.6 11.2
Caravan/other 0.5 0.0 0.4 2.0 1.5
Owned/purchasing 59.1 67.9 60.6 69.4 67.2
Mobility (%)
No vehicle 6.4 1.7 5.6 6.3 8.2
1 vehicle 47.3 38.7 45.8 40.3 37.8
2 or more vehicles 46.3 59.6 48.6 53.4 54.0
*Population aged 15+
Source: Australian Bureau of Statistics 2006 Census.
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Mobility
• Mobility as indicated by number of vehicles per household is highest in
the secondary trade area, with about 60% of all households owning two
or more vehicles.
• In contrast, it is considerably lower in the primary trade area with 46%
of residents owning two or more vehicles, or over 6% of households
without access to a vehicle.
3.3.1 Retail spending implications
Overall the total trade area’s socio-economic characteristics collectively
suggest that spending patterns will be fairly similar to Queensland. However,
this may not be uniform across the primary and secondary trade areas.
Households in the secondary trade area are likely to exhibit higher spending
across all commodity groups due to the younger age profile and higher
disposable incomes of trade area households. Of particular note is the high
share of lone person households in the primary trade area who are expected to
consider convenience as an important factor in terms of take home food and
meals out shopping. Mobility is also of key interest with high mobility in the
secondary trade area coupled with limited shopping alternatives increasing the
propensity to drive to access local convenience shopping facilities.
3.4 RESIDENT RETAIL EXPENDITURE POTENTIAL
3.4.1 Average household retail expenditure
Average household retail expenditure levels for trade area households were
derived using income data from the 2006 Census, the 2003-04 Household
Expenditure Survey, and National and State Accounts data on final household
consumption published by the Australian Bureau of Statistics (ABS). Dollar
values from these sources were inflated to common 2009 values using the
Brisbane Consumer Price Index and other data.
Average household retail expenditures consist of four broad categories:
• Take home food – which includes food expenditure at supermarkets,
grocery stores, greengrocers, butchers, bakers, tobacconists, delis and
bottle shops;
• Meals out/take away food – including restaurants, take away, cafes and
coffee shops;
• Apparel – clothing, footwear and accessories, including hire services;
and
• Homewares/services – includes chemists, newsagents, hardware,
homewares, durable goods and non-food goods (sold in supermarkets
and grocery stores) and personal services (e.g. hairdresser, video hire,
dry cleaning).
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Average household retail expenditures for each component of the trade area
were compiled by these broad retail categories. It is virtually impossible to
define mutually exclusive household expenditures by major store type because
of the broad and overlapping range of goods and services offered by retailers.
Consequently, estimates of household spending cannot be taken as exclusively
available for the support of any one particular retail activity.
Table 3.3 details the average annual household retail expenditure estimated for
the Noosaville convenience retail centre trade area. Average household
expenditure levels for the Sunshine Coast Statistical Division and Queensland
are shown for comparison.
Table 3.3: Average household retail expenditure by retail commodity group,
Noosaville convenience retail centre trade area (2009 $ values)
Take home Meals out Homewares/
Area food take away Apparel services Total
($) ($) ($) ($) ($)
Primary 10,890 3,600 2,610 10,710 27,810
Secondary 11,570 3,830 2,770 11,380 29,550
Total 11,010 3,640 2,640 10,830 28,120
Sunshine Coast SD 10,240 3,390 2,450 10,070 26,150
Queensland 11,040 3,650 2,640 10,860 28,190
Source: ABS 2003-04 Household Expenditure Survey; National and State Accounts; Foresight Partners
calculations.
3.4.2 Total household retail expenditure
Multiplying the average household expenditure by the number of households
yields an estimate of the total retail expenditure potential for the trade area in
June 2010.
Table 3.4 sets out the trade area’s retail expenditure potential by commodity
group over the forecast years between 2010 and 2017. Figure 3.3 shows this
increase by food and non-food groups over this period.
Table 3.4: Retail expenditure potential generated by Noosaville convenience
retail centre trade area households, 2010–2017 (2009 $ values)
Trade area and year Take home Meals out Homewares/
ending June food take away Apparel services Total
($m) ($m) ($m) ($m) ($m)
2010
Primary 18.30 6.05 4.38 17.99 46.72
Secondary 4.98 1.65 1.19 4.89 12.71
Total 23.28 7.70 5.57 22.88 59.43
2013
Primary 18.90 6.25 4.53 18.59 48.27
Secondary 5.40 1.79 1.29 5.31 13.79
Total 24.30 8.04 5.82 23.90 62.06
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Trade area and year Take home Meals out Homewares/
ending June food take away Apparel services Total
($m) ($m) ($m) ($m) ($m)
2015
Primary 19.32 6.39 4.63 19.00 49.34
Secondary 5.81 1.92 1.39 5.72 14.84
Total 25.13 8.31 6.02 24.72 64.18
2017
Primary 19.68 6.51 4.72 19.35 50.26
Secondary 6.17 2.04 1.48 6.07 15.76
Total 25.85 8.55 6.20 25.42 66.02
Increase 2010-2013 1.02 0.34 0.25 1.02 2.63
Increase 2013–2017 1.55 0.51 0.38 1.52 3.96
Total 2.57 0.85 0.63 2.54 6.59
Source: Tables 3.1 and 3.3; Foresight Partners calculations.
Figure 3.3: Growth in available resident retail spend, Noosaville convenience retail centre
(constant 2009 $ values)
40.00
Food Non-food
35.00
30.00
Spending ($ mill)
25.00
20.00
34.40
33.44
32.34
31.62
30.98
30.74
29.72
28.45
15.00
10.00
5.00
0.00
2010 2013 2015 2017
Year ending June
Trade area households at June 2010 generated approximately $59.4 million in
retail sales potential. This expenditure potential is forecast to increase to:
• $62.1 million by June 2013 (first full year of trading);
• $64.2 million by June 2015; and
• $66.0 million by June 2017.
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Available retail expenditure from trade area households is expected to increase
by $2.6 million to June 2013, which is the assumed first full year of trading of
the proposed Noosaville convenience retail centre. Over the four year period to
2017, the pool of resident generated retail expenditure is expected to increase
by a further $4.0 million. In total, retail expenditure by trade area households is
forecast to increase by $6.6 million over the forecast period, with primary
households contributing $3.5 million to the forecast increase.
No allowance has been made for inflation in forecasting future retail
expenditure, as inflation does not create demand for retail floor space.
However, a 0.5% per annum increase in real spending potential has been
factored into post-2010 expenditure estimates.
3.5 VISITOR MARKET
Visitors represent a secondary market for the proposed Noosaville convenience
retail centre.
3.5.1 Visitor accommodation
Whilst a small proportion of visitors stay in private dwellings most stay in
commercial accommodation. The predominant forms of commercial
accommodation available in the Noosa-Noosaville area are hotels, motels,
guest houses and serviced apartments, holiday flats and units. (Refer to
Appendix A for a summary of commercial accommodation available in Noosa-
Noosaville area).
Figure 3.4 shows the locations of hotels, motels, guest houses and serviced
apartments surrounding the subject site. Within the defined trade area, there are
40 accommodation establishments collectively comprising over 1,000 rooms.
Of this, ten establishments with approximately 300 rooms are within a 500
metre radius – a walkable distance from the subject site.
Based on the 1,016 rooms identified within the trade area, this yields a total of
370,840 annual room nights available. At the average Noosa-Noosaville
occupancy rate (59.7%), total annual room nights occupied amounts to
approximately 221,400. After taking into consideration average length of stay
(3.6 days) and persons per room (2.0), it is estimated that the defined catchment
attracts 123,000 overnight visitors a year. This translates into 442,800 visitor
nights a year.
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Figure 3.4: Visitor Accommodation within Trade Area
0 0.5 1
kilometres
Subject
Subject Site
Site
500
500 metres
metres
Page 29
3.5.2 Visitor expenditure
Tourism Research Australia data estimate that domestic overnight visitors
spent approximately 11 million nights in the Sunshine Coast tourism region
(year ending March 2010), representing about 80% of overnight visitors.
International visitors spent over 2 million nights in the Sunshine Coast region
in the year ended March 2010 (20% of overnight visitors) and approximately 5
million day trips were made to the Sunshine Coast region in the year ended
March 20101.
The total estimated expenditure on food and drink, and shopping as at March
2010 for the Sunshine Coast tourism region is shown in Table 3.5 for domestic
visitors, international visitors and day visitors. It should be noted that
visitation and average expenditure per visitor night, especially for international
visitors, can be volatile over time as the mix of visitors changes.
Table 3.5: Estimated retail expenditure by domestic, international and day visitors
to the Sunshine Coast, March 2010 (2009 $ values)
Domestic International Day
Total expenditure visitors visitors visitors Total
Food and drink ($ million) 484.0 46.2 137.2 667.4
Shopping ($ million) 192.3 18.0 122.2 332.5
Total retail expenditure ($ million) 676.3 64.2 259.4 999.9
Visitor nights/day visitors (million) 11.0 2.5 5.0 –
Average retail spend per night/day trip ($) 61 25 52 –
Annual visitors in catchment 98,400 24,600 500,000 623,000
Total retail expenditure ($ million) 6.0 0.6 26.0 32.6
Source: Travel by Australians, March 2010, & International Visitors in Australia, March 2010. Tourism
Australia; Sunshine Coast Regional Snapshot, Year ended March 2010, Tourism
Queensland;Foresight Partners estimates.
At March 2010, expenditure on these items by visitors to the Sunshine Coast
was (at 2009 dollar values):
• $676.3 million for domestic visitors ($61 per domestic visitor night);
• $64.2 million for international visitors ($25 per international visitor
night); and
• $259.4 million for day visitors ($52 per daytripper).
The defined catchment has an estimated annual overnight visitor population of
123,000. The proportion of domestic overnight and international overnight
visitors to the Sunshine Coast can be used to estimate the number of visitors
within the catchment. Assuming an 80:20 split, there are 98,400 domestic
overnight and 24,600 international overnight visitors respectively. Day trip
1
Travel by Australians, March 2010; International Visitors in Australia, March 2010,
Tourism Research Australia.
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visitors to the Noosaville area are estimated at 10% of the total day visitor
population on the Sunshine Coast, on par with the proportion of overnight
visitors. Thus, some $32.6 million in retail spending is potentially available to
Noosaville business, comprising:
• $6.0 million generated by domestic visitors (staying in both commercial
accommodation and private accommodation);
• $0.6 million generated by international visitors (staying in both
commercial and private accommodation); and
• $26.0 million generated by day visitors.
Assuming a modest 1% per annum growth in visitor retail expenditure over the
2010 to 2017 forecast period, future expenditure available to Noosaville
retailers could increase from the current estimated $32.6 million to:
• $33.6 million at 2013, the first year of trading for Noosaville
convenience retail centre;
• $34.3 million at 2015.
• $35.0 million at 2017.
Thus local visitors generate a large pool of retail expenditure. However, it
should be noted that not all of this available spending will be directed to the
subject proposal with other retail centres including those in Noosa and further
afield at Maroochydore and the Sunshine Coast Hinterland attracting a share of
the total spending available.
3.6 TOTAL EXPENDITURE POTENTIAL
Total expenditure potential by the trade area resident and visitor markets is set
out in Table 3.6 below.
Table 3.6: Retail expenditure potential available from resident and visitor
markets, 2010-2017 (2009 $ values)
Resident ($m) Visitor ($m) Total ($m)
2010 59.4 32.6 92.0
2013 62.1 33.6 95.7
2015 64.2 34.3 98.5
2017 66.0 35.0 101.0
Increase 2010-2013 2.6 1.0 3.6
Increase 2013-2017 4.0 1.4 5.4
Total 6.6 2.4 9.0
Source: Tables 3.4 and 3.5; Foresight Partners calculations.
At June 2010, these markets collectively generated an estimated $92.0 million
in retail sales potential. This is forecast to increase to:
• $95.7 million by June 2013 (first full year of trading);
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• $98.5 million by June 2015; and
• $101.0 million by June 2017.
Thus, over the seven year period, total annual resident and visitor expenditure
potential is forecast to increase by around $9.0 million.
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4 Centre Performance and Impact
This section sets out the likely performance and feasibility of the proposed
Noosaville convenience retail centre and discusses its implications with respect
to impacts upon the existing network of centres serving the Noosa area.
4.1 CENTRE PERFORMANCE PROSPECTS
The proposal’s future performance will depend, in part, upon its mix of retail
and other uses, available pool of retail spending and future growth potential.
4.1.1 Tenancy mix
The tenancy mix has been prepared to denote the centre’s role and function as
convenience retail centre. The applicant has to-date received expressions of
interest from Night Owl, Nando’s, Noodle Box, and Pizza Hut, and these are
incorporated as part of the tenancy mix. (Refer to Appendix B for letters of
interest).
The mix of tenants is expected to include a range of convenience retailers that
would complement the existing choice of retailers within the area, particularly
those within the Noosaville Business Centre.
The subject development would be anchored by a convenience store (i.e. Night
Owl or 7-11). Its tenancy mix is proposed to comprise several take away food
retailers operating extended trading hours, thereby addressing the limited
choice of such facilities in the area.
Table 4.1 sets out an indicative tenancy mix for the proposed centre.
Table 4.1: Indicative tenancy mix, proposed Noosaville convenience retail
centre
Take home Meals out/ Homewares Total
food take away Apparel & services
Shop type (m²) (m²) (m²) (m²)
Convenience Retail
Convenience store 125 18 143
Bakery/patisserie 144 144
Deli/café 165 165
Takeaways 352 352
Total convenience retail 269 517 - 18 804
Professional services 111
Total centre* 915
* A further 98m² is provided for alfresco dining. Source: Marquette Properties and Foresight Partners.
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4.2 CENTRE MARKET SHARES AND TURNOVER FORECASTS
The centre’s market shares have been formulated under the following
assumptions:
• The centre will serve as a convenience based retail destination
providing a wide selection of convenience retailers in the one location
with extended trading hours.
• The convenience store will provide just that – basic convenience items
currently underrepresented in the area. In light of its convenience
function and role, it would be largely distinct to other retail centres such
as Noosa Village which caters primarily for major food and grocery
shopping trips.
• It will provide the single largest clustering of fast food outlets with
extended operating hours, affordably priced.
• Access to the centre will be off both Gibson Road and Skipper Place.
There will also be provision for on-site parking making the centre easily
accessible and convenient to patrons.
• It will be within walking distance to approximately half of its resident
catchment and also to a large visitor market.
• Noosa Civic will be expanded with the addition of a department store,
discount department store, supermarket, and specialty shops.
Table 4.2 below sets out our estimates of market shares and sales likely to be
achievable by the proposed centre at 2013. It assumes that the 143m²
convenience store is accompanied by a number of specialty shops,
predominantly take away and also a bakery/patisserie and bank (Note that
approximately 18m² of the convenience store space is allocated to the
homewares/services commodity group in Table 4.1 to reflect its non-food
merchandise). Overall, the centre is forecast to achieve sales of $4.5 million
($5,647/m²) at June 2013.
Figure 4.1 shows the origin of the centre’s turnover at 2013 by trade area.
The centre is expected to draw 7.5% of the take home food spending generated
by primary trade area households and 3.0% of the secondary trade area’s take
home food spending.
The highest penetration would be achieved in the meals out/take away
spending. The clustering of four national fast food outlets together with a
deli/café will be highly appealing to the resident and visitor market. The subject
proposal will be the most convenient fast food retail destination to primary and
secondary households with provision of on-site parking and extended operating
hours, thereby enhancing convenience.
An estimated 34.4% of the centre’s sales (30% of take home food, 40% of
meals out-take away, and 20% of homewares/services sales) is expected to
come from visitors to the area and others residing outside the defined trade
area. The meals out/take away food component is expected to achieve a higher
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share of external sales reflecting the lack of fast food outlets in the area and its
exposure to homeward bound traffic heading west towards Tewantin.
Table 4.2: Proposed Noosaville convenience retail centre forecast market
shares and retail turnover, June 2013 (2009 $ values)
Take home Meals out/ take Homewares
Trade area food away Apparel & services Total
Retail floor space 269 m² 517 m² – 18m² 804m²
Market shares (%) (%) (%) (%) (%)
Primary 7.5 17.5 – 0.7 5.4
Secondary 3.0 10.0 – 0.1 2.5
Total trade area 6.5 15.8 – 0.5 4.8
Resulting turnover ($m) ($m) ($m) ($m) ($m)
Primary 1.42 1.09 – 0.12 2.63
Secondary 0.16 0.18 – 0.01 0.35
Total trade area 1.58 1.27 – 0.13 2.98
External/rogue sales* 0.68 0.85 – 0.03 1.56
Total centre turnover 2.26 2.12 – 0.16 4.54
Productivity ($/m²) 8,401 4,101 – 8,889 5,647
*Assumes 30% of take home food, 40% of meals out-take away, and 20% of homwares/services sales
originate outside the defined trade area. Source: Tables 3.4; Foresight Partners estimates.
Figure 4.1: Origin of Noosaville Convenience Centre Sales, 2013 ($ million)
External, $1.56, 34%
Secondary, $0.35,
Primary, $2.63, 58%
8%
Assuming the forecast market shares remain constant, i.e. no other major retail
additions occur over the forecast period, the centre’s sales would increase to:
• $4.7 million ($5,345/m²) by 2015; and
• $4.8 million ($5,517/m²) by 2017.
Table 4.3 sets out the detailed origin of sales for these years.
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Table 4.3: Proposed Noosaville convenience centre retail turnover at June
2015 to 2017 (constant 2009 $ values)
Take home Meals out/ take Apparel Homewares & Total
Trade area food ($m) away($m) ($m) services ($m) ($m)
2015
Primary 1.45 1.12 – 0.12 2.69
Secondary 0.17 0.19 – 0.01 0.37
Total trade area 1.62 1.31 – 0.13 3.06
External/rogue sales 0.69 0.87 – 0.03 1.59
Total centre turnover 2.31 2.18 – 0.16 4.65
Productivity ($/m²) 8,587 4,217 – 8,889 5,784
2017
Primary 1.48 1.14 – 0.13 2.75
Secondary 0.19 0.20 – 0.01 0.40
Total trade area 1.67 1.34 – 0.14 3.15
External/rogue sales 0.72 0.89 – 0.04 1.65
Total centre turnover 2.39 2.23 – 0.18 4.80
Productivity ($/m²) 8,885 4,313 – 10,000 5,970
Source: Table 4.2; Foresight Partners estimates.
4.3 IMPACT ANALYSIS
4.3.1 Economic impact defined
Economic impact stems from the probable reduction in retail turnover at
existing shopping centres and retail areas attributable to the introduction of
competitive development in the form of a new centre, or the expansion of an
existing centre. The expected turnover generated by the new centre, or the
additional turnover generated by centre extensions, represents the dollar impact
on an area’s retail network in the first full trading year in which it is introduced.
That is, once the new centre or centre extensions have been trading long
enough to ‘settle in’ (usually a year), subsequent improvements in that centre’s
turnover performance cannot be considered as a further impact, as it is an
established part of the retail network. It then becomes subject to the impacts of
competitive strategies of other centres and/or the impacts of further new
competition.
Dollar impacts are usually distributed among competitive centres and retail
areas taking into account:
• the new or extended centre’s size and function;
• the location of competitive centres or retail areas of comparable size
and/or function;
• shopper access relative to competitive centres/retail areas;
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• physical attributes of competitive centres and retail areas, such as age,
design, situation (free-standing centre or part of a central business area),
etc.
No universally accepted standards of impact exist (or are possible) as each
retail market and retail development is different. A frequently used ‘rule of
thumb’ is that an impact of 15% or more of turnover should be cause for
concern. This concern is not about the impacts upon the profitability of
affected centres and retailers, or about affording existing centres and retailers’
protection from healthy competition or from changing market conditions.
The primary concern is to ensure that the premature or inappropriate
introduction of a new centre or centre extension does not jeopardise the current
or future delivery of a range of retail goods and services available in a variety
of centre types and formats to the community.
This rule of thumb must be applied with considerable caution as each centre
and trade area is different. For example, in stable or declining markets in many
rural communities, impacts of 15% or more upon an existing centre or retail
area would be cause for concern. There may be insufficient prospects for
growth to ameliorate these impacts within a reasonable time period (usually
about three years). Even then, the potential loss (or change of use) of existing
retail facilities, which might consist of old or outdated floor space, must be
weighed against the replacement and improvement of retail facilities that a new
development might bring.
Areas with high growth potential can absorb impacts on centre turnovers well
above the 15% rule of thumb, usually with little difficulty. Growth in the pool
of retail expenditure available to support all retail centres usually will quickly
restore turnover initially lost to new competitive centres in such areas.
4.3.2 Amount and distribution of impacts
The proposed convenience retail centre will serve a complementary role to the
Noosaville Business Centre and meet the lower-order retail needs of the
resident and visitor population. In contrast, the traditional supermarket at
Noosa Village provides for the major chore food shopping needs of the
population. Therefore, they will not compete directly with one another.
In terms of fast food, a reconnaissance of the area has identified a relative
shortfall. The Noosaville Visitor Mixed Use Zone (i.e. Gympie Terrace) has a
diverse mix of restaurants and cafes, generally aimed at the higher socio-
economic market and this is discernible through the menus’ price points. There
is a small clustering of fast food outlets on Thomas Street but apart from the
Red Rooster, the price points are also higher than those proposed as part of the
subject proposal. Furthermore, their operating hours are generally restricted to
dinner only.
In effect, there are only three moderately priced local fast food outlets that are
comparable to those proposed within the subject development – McDonalds,
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Dominos and Red Rooster. Therefore, the subject proposal would expand the
range and choice of fast food outlets within the local community.
The Noosaville convenience retail centre is forecast to capture less than 5% of
retail spending from local trade area residents and visitors. It is forecast to
achieve a total turnover of $4.5 million at June 2013 and this amount represents
the level of impact it will have upon Noosa Shire’s retail network.
Estimates of the likely distribution or transfer of this $4.5 million in impacts
upon the network are shown in Table 4.4.
Virtually all of the potential impact or transfer of sales to the subject centre is
likely to be from other centres with food stores and other convenience retailers.
Table 4.4: Forecast transfer of sales, proposed Noosaville centre, June 2013
(2009 $ values)
Sales transfers
Major centres/areas ($ million) (%)
Noosaville Business Centre 1.59 35.0
Noosaville Visitor Mixed Use Zone (i.e. Gympie Terrace) 1.14 25.0
Noosa Civic 0.91 20.0
Other centres within and beyond trade area 0.91 20.0
Total distribution $4.54 100.0
Source: Foresight Partners estimates.
It is estimated that the largest transfer of sales ($1.6 million) would be from the
Noosaville Business Centre. While the subject proposal will serve a
complementary role to the Noosaville Business Centre, it is the closest retail
destination providing the trade area’s only major supermarket and a limited
range of fast food.
Approximately 25% of $1.1 million is expected to be drawn from the
Noosaville Visitor Mixed Use Zone, which provides the area’s largest
concentration of restaurants and cafes.
Around $0.9 million or 20% of the forecast turnover is expected to be
transferred from Noosa Civic which is Noosa’s single largest retail centre
providing for the higher order retail needs of residents.
The remaining $0.9 million in sales will be transferred from a large range of
centres both within and outside of the defined trade area. These include the
Aldi supermarket, Noosa Junction Business Centre (Noosa Fair and Noosa
Junction), Tewantin, Hastings Street, and smaller neighbourhood centres
(Noosa Outlook, Bushlands Shopping Centre, Noosa Wharf). As turnover
would be redirected over a large number of centres/areas, no single centre/area
is expected to experience more than minor levels of impacts. Therefore, the
levels of impact should not affect the vitality, viability or functional role of the
network of centres serving Noosa Shire.
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4.3.3 Amelioration of impacts
Between 2010 and 2013, before the proposed centre completes its first year of
trading, household retail expenditure available to all retailers should increase
by about $2.6 million to $62.1 million (constant 2009 dollar values). Visitor
spending should also increase by $1.0 million to $33.6 million over the same
period culminating in a total increase of $3.6 million to $95.7 million.
Between the proposed centre’s first and fifth years of trading (2013–2017),
available retail spending by residents and visitors should increase by another
$5.4 million to $101.0 million. This further increase in available spending
should enable affected centres to recoup most of the impacts attributable to the
Noosaville convenience retail centre within a year or two.
In our opinion, levels of impact forecast are not sufficient to effect the viability
of existing or future centres or retail areas in and near the defined trade area, or
threaten their functional roles and levels of service they currently provide to the
community.
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5 Need and Impacts
5.1 NEED
The need for the proposal is indicated by the following:
• The local area has a substantial number of residents and visitors:
o The resident population within the main trade area is currently
estimated at 4,700 persons of whom 3,600 reside in the primary
trade area – that is within one kilometre from the subject site.
o Within the defined catchment, there are a total of 40 visitor
accommodation establishments collectively comprising over
1,000 rooms. This area attracts an estimated 123,000 overnight
visitors and 442,800 visitor nights annually.
o Within a 500 metre radius of the subject site, there are 10 visitor
accommodation establishments with a total of 305 rooms. Thus,
accommodation units within the immediate vicinity of the
subject site generate an estimated 133,200 visitor nights
annually.
o The trade area market is forecast to continue to grow.
Expenditure potential generated by the trade area resident and
visitor market is currently estimated at $92.0 million which is
forecast to increase to $101.0 million by 2017, an increase of
$9.0 million over the seven year period.
• The local area is undersupplied with convenience retail facilities:
o There are no existing or proposed convenience retail centres in
Noosaville.
o Food and grocery products in Noosaville are only available at (1)
a full-line supermarket that caters mainly to major grocery
shopping trips and is not open for extended hours, (2) a petrol
station convenience store on the eastern fringe of Noosaville, (3)
a small specialty store on Gympie Terrace with parking
constraints, and (4) the Aldi supermarket on the fringe of the
trade area has a limited and distinct product mix.2
o The existing shops and services within the Noosaville Visitor
Mixed Use Zone mainly cater to destination dining and
relatively high price points. They are not within a walkable
2
Aldi has around 700 SKU’s compared to 20,000-25,000 SKU’s in a traditional supermarket
and it has largely distinct product lines. Because of its product mix, it functions more as
destination shopping.
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distance for many trade area residents and there are parking
constraints.
o The selection of fast food/take aways around Thomas Street has
relatively high price points and restricted trading hours.
o The limited selection of such facilities in the local area
encourages vehicle travel to access shops and services further
afield.
o Supermarkets and convenience retailing serve different functions
and therefore are commonly located within walking distance of
each other. On the Sunshine Coast, examples include:
- Mooloolaba Central (Coles) and Mooloolaba Junction
(Night Owl);
- Noosa Junction (Supa IGA) / Noosa Fair (Coles) and 7-11
(on Noosa Drive); and
- Coolum Park (Woolworths) and Coolum Park (Foodworks).
• There are no alternative locations available in Noosaville for a
convenience centre:
o Our assessment has found no suitably zoned sites.
o There are no development applications for convenience retail
centres in Noosaville.
o As per their letters of interest (Appendix B), convenience
retailers have been unable to find a suitable location for their
business in the area.
5.2 IMPACTS
Impacts of the proposed convenience retail centre upon competitive centres
will be minor and not jeopardise their vitality or viability, or threaten their
functional roles:
• The lettable area of the Noosaville convenience retail centre (915m²) is
equivalent to less than 5% of the total retail floorspace in the Noosaville
Business Centre (24,000m²). The proposal will add eight shops to the
over 70 existing shops in the Noosaville Business Centre. Its limited
size gives the subject proposal a strong convenience orientation which
will complement the much more comprehensive retail offering in the
Noosaville Business Centre.
• The maximum impact is forecast on the Noosaville Business Centre
($1.6 million), which would represent less than 2% of its turnover and
would not threaten its viability.
• Continuing growth in residents and visitors in the area will help
ameliorate any impacts on centres/areas currently serving Noosa Shire
residents with no levels of impact threatening the functional roles and
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levels of service the existing retail network currently provides to the
community.
5.3 OTHER COMMUNITY BENEFITS
The proposed centre should also generate beneficial impacts, such as:
• providing trade area residents with greater choice and variety of shops
and food services with extended operating hours;
• introducing more affordably priced food and beverage services;
• enhancing competition in pricing and service;
• providing ease of accessibility with ample parking in light of high
vehicle mobility of local residents;
• providing facilities within walking distance of many trade area residents
and visitors, thereby generating savings in travel time and costs; and
• providing additional local employment, generating the full-time
equivalent of approximately 40 to 50 employees3.
5.4 CONCLUSION
Our market investigations indicate that the proposed convenience centre can be
supported at the subject site at 2013. Notwithstanding the planning scheme
provisions, the market size and characteristics indicate that there is significant
demand for this facility particularly in light of the existing undersupply of
convenience retail facilities in the Noosaville area.
The assessment of need for the proposed development at Noosaville can be
considered within two categories:
Retailer Need – There is a lack of alternative suitably zoned sites in the local
area with convenience retailers unable to find suitable locations for their
businesses. The subject site provides an opportunity for a convenience retail
centre to establish in a central and convenient location in Noosaville. The local
area has a substantial resident and visitor population which is underserved by
convenience retail facilities.
Anecdotal evidence shows the proposal will sustain a number of local
businesses which have proven difficult in other areas including Gympie
Terrace, Hastings Street and Noosa Sound as a result of high rents.
Community Need – Local residents and visitors would reasonably expect the
provision of local convenience retailing as the local area is undersupplied with
respect to convenience retail and food service facilities compared to the range
typically available to residents in urban areas and visitors in significant tourism
3
Based upon an average of one worker per 26 m² of neighbourhood shopping centre space
(source: Queensland Shopping Centre Industry, Property Council of Australia, January 1999).
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areas. Development of the proposed convenience retail centre would satisfy a
range of consumer needs:
• increasing the range and availability of convenience retailing including
food and beverage services in the local area;
• expanding the choice of convenience store operators and food and
beverage services in the area;
• increasing the level of convenience in terms of operating hours and car
parking;
• increasing affordably priced food and beverage services;
• providing access to a wider range of goods and services in a convenient
location with high visibility and good vehicular access and parking;
• reducing the need to travel to convenience centres further afield for the
purchase of basic convenience items, including take away food meals;
• providing the opportunity for local residents and visitors to walk and
cycle to the convenience centre generating savings in travel time and
costs;
• enhancing the potential for convenient multi-purpose trips such as to
the centre and tavern;
• enhancing competition in the local area, which could have positive
impacts on prices;
• providing a focus for social and community interaction through the food
and beverage facilities; and
• creating additional employment opportunities both in the short-term
during the construction phase as well as in the long-term.
Our investigations and market assessment conclude that there is a community
and planning need for the development and the proposal will create a benefit to
the community. Local residents and visitors would unarguably benefit from a
modern convenience retail centre, including a small convenience store and a
complementary range of food and beverage services.
The proposal will ensure the provision of appropriate facilities to meet
community needs for basic requirements. The Noosaville convenience centre is
not expected to jeopardise the vitality or viability, or threaten the functional
roles and levels of service competitive centres provide to the community.
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Appendix A
VISITOR MARKET
Visitor accommodation
Since the March quarter 2005, hotels, motels, guest houses and serviced
apartments surveyed by the Australian Bureau of Statistics has included
establishments with five or more rooms. Similarly, holiday flats, units and
houses include letting entities (owners, managers or real estate agencies) with
five or more units available.
Table A.1 summarises the commercial accommodation available in the Noosa-
Noosaville area and Sunshine Coast tourism regions. In the year ending March
quarter 2010, Noosa-Noosaville accounted for:
• 27% of all room stock and 29% of all room nights spent in the
Sunshine Coast region, with an annual average occupancy slightly
higher than the Sunshine Coast (59.7% and 57.4% respectively);
• A longer average length of stay (3.6 days) compared to the Sunshine
Coast (3.3 days);
• 38% of all holiday unit stock and 38% of all unit nights spent in the
Sunshine Coast region;
• A similar unit occupancy rate (58.0% versus 58.4%) and a similar
average length of stay (2.7 days in Noosa-Noosaville and 2.6 days in
the Sunshine Coast region).
Table A.1: Visitor commercial accommodation, year ending March 2010, Noosa-
Noosaville and the Sunshine Coast tourism region
Type of Commercial Accommodation
Hotels, motels, guest houses and serviced apartments
Establishments Room Stocks Room Nights Room Occ Avg length of
Area (No.) (No.) Occ (No.) (%) stay (days)
Noosa-Noosaville 34 1,499 326,733 59.7 3.6
Sunshine Coast 122 5,457 1,143,908 57.4 3.3
Holiday flats, units and houses
Letting entities Unit Stocks Unit Nights Unit Occ (%) Avg length of
(No.) (No.) Occ (No.) stay (days)
Noosa-Noosaville 38 1,699 359,496 58.0 2.7
Sunshine Coast 105 4,431 944,233 58.4 2.6
Source:ABS Tourist Acommodation, Small Area Data, Queensland.
Figure A.1 shows the seasonality of hotel room occupancy rates for
establishments with 15 or more rooms, over the past four years.
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Figure A.1: Room Occupancy rates, Hotels with 15 or more rooms, Noosa Shire
and the Sunshine Coast tourism region, March 2005 to March 2010
Room Occupancy Rates (15+ Rooms), Noosa-Noosaville and Sunshine Coast Tourism Region
90.0
80.0
Occupancy Rate (per cent)
70.0
60.0
50.0
40.0
30.0 Noosa-Noosaville
20.0 Sunshine Coast TR
10.0 Sunshine Coast Annual Average
0.0
05
Ju 6
Ju 7
Ju 8
Ju 9
O 5
O 6
O 7
O 8
O 9
A 5
Fe 5
A 6
A 6
Fe 6
A 7
A 7
Fe 7
A 8
A 8
Fe 8
A 9
A 9
Fe 9
10
D 5
D 6
D 7
D 8
D 9
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
-0
0
-0
0
0
-0
0
0
-0
0
0
-0
0
0
-0
-
n-
b-
n-
b-
n-
b-
n-
b-
n-
b-
pr
pr
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ug
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ug
ug
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A
Source: ABS Tourist Accommodation, Small Area Data, Queensland. Note: Due to changes in recording
methodology, this graph shows room occupancy rates for establishments with 15 or more rooms only.
The Noosa-Noosaville and Sunshine Coast tourism region share very similar
patterns of seasonality.
Room occupancy peaks in the September and December months, coinciding
with the longer school holidays, and experience a low season in the months of
March and April, where school seasons are the shortest. Generally, Noosa-
Noosaville experiences higher peaks in occupancy than the Sunshine Coast, but
lower low season.
Visitor expenditure
Tourism Research Australia (TRA) publishes quarterly survey data on the
number of visitors and types of visits to tourism regions of Australia. The
National Visitor Survey and International Visitor Survey do not, however,
present specific data for the former local government areas (i.e. Noosa Shire,
Maroochy Shire or Caloundra City). However, the surveys do include visitor
night data for all nights spent away from home, whether spent in commercial
accommodation, with friends and relatives, camping or in their own holiday
home. Thus, the TRA surveys provide more comprehensive information on the
number and type of visitors to a tourism region than the ABS Tourist
Accommodation survey which only includes commercial accommodation
facilities.
TRA defines day trips as round trips of at least 50 kilometres, which results in
the traveler spending four or more hours away from home. Day trips exclude
routine trips such as work and school commuting but do include shopping trips.
Essentially, a person who lives in Noosa and travels to Maroochydore to
complete their shopping and stays away from home for more than four hours, is
a day tripper and their expenditure on that trip is counted as part of the TRA
spending estimates for the Sunshine Coast day trip market.
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These characteristics of the TRA survey data make it difficult to separate out
visitor retail spending from resident household spending, and some double-
counting of expenditure is unavoidable. Nonetheless, the TRA survey and
other data allows for an approximation of retail spending by visitors and day
trippers in the Sunshine Coast region to be made, and a fair share assumption
applied to the spending potential for the Noosa-Noosaville area. That is,
Noosa-Noosaville’s potential share of visitor expenditure would be roughly
equivalent to its share of the Sunshine Coast’s room–unit stocks and room–unit
nights.
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Appendix B
EXPRESSIONS OF INTEREST
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10 August 2010 Matthew Creagh Director - Marquette Properties P: 0432 484 752 E: [email protected] W: www.marquette.com.au Matthew, OFFER TO LEASE — 150m2 Noosaville Convenience Centre — Cnr Gibson Rd & Skipper Place We are prepared to lease the above premises in accordance with the following terms and conditions and subject to terms of the Standard Lease and the Lessor’s Board Approval. 1. 2. Lessor: Lessee: Leased Premises: Area (Approximately): Term: Gross Rental: Rental Reviews: Options: TBC Nightow! Properties Pty Ltd (ACN 126 734 549) Level 1, 9 Murrajong Road SPRINGWOOD QLD 4127 Position TBC TBC 150-180m? (Estimated NLA) Area subject to final survey - Survey to be completed at Lessor's expense in accordance with PCA standard methods of measurement for retail. 5 years $500per m* + GST per annum (Which is equal to $75,000.00 plus GST per annum assuming an area of 150m7). CPI per annum during the initial term. At commencement of the option period rent will be reviewed to market (rent not to decrease) with CPI reviews per annum. 2 x Five (5) years. The Lessee is required to exercise the option no earlier than twelve (12) months and no later than nine (9) months prior to Lease expiry.
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10. 11. 12. 13. 14, 15, 16. 17. Incentives: Permissible Use: Core Trading Hours: Bank Guarantee: Tenancy Handover Date: Lease Commencement: Rental Commencement: Outgoings & Cleaning: Public Liability Insurance: Lease Costs: Document & Legal 1) 4 weeks rent free (Fit-Out period) from handover date. 2) 6 months rent free thereafter. TO be taken as 50% rent for the first year 24hr/7day Convenience Store. Lessor is responsible for providing DA approval for our use. Min trading hours 0500-2400 (7days) Max trading hours: 24hrs (7days) Bank guarantee or retail bond- equivalent to 3/12.0f annual rent in favour of the landlord and have an expiry date 3 months after the tenancy has been vacated & made good. Bank Guarantee is to be provided upon granting of possession of the tenancy and will be acceptable from the sub-lessee (NightOwl Franchisees). TBC TBC TBC N/A The Lessee shall maintain a current Public Liability Insurance policy of at least $20 million and provide the Lessor with a Certificate of Currency as and when requested. All Lease documentation will be drafted by the Lessor's solicitor. The Lessor and Lessee will each be responsible for their own legal costs associated with the preparation and execution of the lease documentation. The Lessee will be responsible for the costs associated with the stamping and registration of the lease documentation. The Lessor is responsible for the survey costs associated with the leased area.
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18. 19. 20. 21. Make Good: Lessor Works: Lessee Works: Signage: As per standard lease conditions. The Lessor will provide the base building tenancy as set out in the following documents provided to the Lessee: The Lessor will provide the base building tenancy as set out in the following documents provided to the Lessee: e Internal Lighting to NightOwl Specs e Tiled Flooring to NightOwl Specs e Install Automatic Biparting auto doors to NightOwl specs Tiled Grid Ceiling Power: 100amp, 3 phase, 36 pole distribution. « Min 3 x external mercury vapour floodlights on awning above tenancy lighting forecourt of shop and immediate adjacent carparks « 4x 10min express car bays Under-slap drainage: o Cold 20mm water outlet with stopcock enter the tenancy up through slab with valve remote read meter. o Capped sanitary drain (100mm) connection outlet at floor level toward the rear of the tenancy. o Capped trade waste (100mm) connection outlet at floor level toward the rear of the tenancy. Any Lessee fit-out works to be approved by the Lessor before any works can commence. The Lessee will forward indicative plans and a copy of the Development Application for the Lessor’s review and consent, such consent cannot be unreasonably withheld. The Lessor must either consent or refuse consent within ten (10) business days of receipt of the Lessee’s written request for consent. If the Lessor refuses consent it must provide in writing the reasons for such refusal. The Lessee will be entitled to erect its signage on the fabric of the tenancy, subject to Lessor consent (which is not to be unreasonably withheld) and local authority planning approval. Requirements: 1 x Top Position Illuminated Pylon Sign, 1 x Under Awning Illuminated Sign, 1 x Fascia Illuminated Awning Sign, & 2 x NightOwl External Promotional Lightboards to the shop-front.
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22. 23. 24, 25. 26. Electricity & Telephones: GST Clause: Shop Occupancy: Availability: Special Conditions: The cost associated with the connection, metering and consumption of these services is the responsibility of the Lessee. The Lessee acknowledges that the Base Rent has been negotiated without any allowance for a Goods and Services Tax (“GST”). The Lessee will pay or reimburse the Lessor at the same time the base rent is payable for the GST calculated on the rent and other amounts payable under the Lease. Occupancy of the premises will not be permitted until the Lessee has executed the Lease, provided the Guarantees and proof of insurances, paid all monies due to the Lessor and/or its Solicitor and otherwise complied with the terms of the Lease documents. TBC e Centre Naming Rights e The Tenancy is designated as a food tenancy and able to sell appropriate Hot & Cold food items: BBQ Chickens, Chicken Rolls, Pies, Sausage Rolls, Pastries, Coffee, Sandwiches, Rolls, Pastries and other food items as required. e NightOw securing a Franchisee by 31.12.2010 e Landlord allowing NightOwil to install 2 x external promotional light-boxes to building facade. Specifications to be provided to the landlord for approval before installation. Such approval and cannot be unreasonably withheld. e« Access to one (x1) secure car-park for the Franchisee. e Exclusivity: White Milk (>It), Bread, & Tobacco products. e Lessor securing the following tenants: Grill’d, Pizza Hut, Nandos, Nodle Box, Bottleshop, Cafe & Bank.
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Upon acceptance of this offer by the Lessor, a Agreement to Lease will be prepared by the Lessor’s Solicitors. Statutory charges and other ancillary costs including stamp duty are to be at my/our expense. Signed As Tenant/s: On Behalf of Tenant: In the Presence of: Acknowledgement: Nightowl Properties Pty Ltd (ACN 126 734 549) Level 1, 9 Murrajong Road SPRINGWOOD QLD 4127 Joel Douglas Ross Pallentine Ue) a) I/we acknowledge that no promise, representation, warranty or undertaking has been made to me/us in relation to the potential of the premises to be leased or otherwise in relation to the Lease unless in writing with this offer and we further acknowledge that the Permissible Use does not imply any form of exclusivity. b) I/we acknowledge that the written terms of this offer and of any acceptance by the Landlord and of the Standard Agreement to Lease and Lease will contain the whole of the agreement reached between me/us and the Landlord. 5
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The following information is supplied to enable the Lease to be prepared. Tenant: Proposed Trading Name: Address (If Company, State Registered Office): Address for Accounts: State of Incorporation: Contact: Telephone: Solicitors Name & Address: TBC NightOwl Noosaville Queensland Locked Bag 3020 Springwood Q 4127 Queensland Joel Douglas Business:07 3387 8787 Mobile: 0403 188 027 Facsimile: 07 3387 8788 Donna Field | Paralegal williams | graham |carman solicitors 1A Water Street, Cairns Qld 4870 | PO Box 947, Cairns Qld 4870 T: 07 4046 1184 | F: 07 4031 3146 | E: [email protected] | www.wgclaw.com
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16 August 2010
Matthew Creagh
Marquette Properties
E: [email protected]
Dear Matthew,
RE: GIBSON RD. NOOSAVILLE
We wish to formally express interest in letting space in the proposed development in Gibson
Road, Noosaville.
We are seeking to establish a Nando's Restaurant and a Noodle Box Outlet. We will require the
following:
Nando's: 120 m2 plus 20 m2 alfresco area.
Noodle Box: 90 m2 plus 20 m2 alfresco area.
Would you please keep us appraised as to the development process and look forward to a
positive outcome.
Yours Sincerely
RAY CARUANA
Managing Director
RECON RETAIL
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Yum! Restaurants Australia Pty Limited ABN 16 000 674 993 Kentucky Fried Chicken Pty Limited ABN 79 000 587 780 20 Rodborough Road (Locked Bag 522) Frenchs Forest NSW 2086 Australia Tel (612) 9930 3000 Fax (612) 9930 3001 Restaurants International 16" August, 2010 Matthew Creagh Director Marquette Properties Via email — [email protected] Dear Matthew, Re: __ Expression of interest — Development at 37 Gibson Rd, Noosaville Following our recent correspondence, I would like to formally register Pizza Hut’s interest in a tenancy on the proposed development at 37 Gibson Rd, Noosaville. Noosaville has been identified as an opportunity for Pizza Hut and fits into our 3 year market plan. However, up until this point we have had difficulty finding a suitable location. We are therefore keenly interested in this proposed development and feel that Pizza Hut would complement the tenancy mix. Pizza Hut requires approx. 80-100sqm. We look forward to receiving further information as it comes to hand. My full contact details are: D: (02) 9930 3033 M: 0414 331 039 E: [email protected] urants International \ stair Prebble Development Manager — KFC & Pizza Hut a ge Aut Aueeican Foop a — TACO