PARRAMATTA SQUARE RETAIL STRATEGY
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PARRAMATTA SQUARE / CONTENTS
introduction This report has been prepared by loopcreative based on the retail assessment of the site and it’s surrounds during the period of October 2012 - March 2013. The site at 169 Macquarie Street and the greater part of the Parramatta Square development site provides a unique opportunity from a retail perspective. The location whilst not in parallel competition to Westfield should encourage a diverse retail mix, and provide an offer that is currently not available within Parramatta. We believe that the development should seek to provide a genuine point of choice for consumers rather than that is bound by pure geographic convenience. We believe that it is important that the spaces have a cohesive balance and identity and that the retail mix be affordable approachable and cater to a broad multicultural market. We see the retail space activated throughout the day and believe that the success of the precinct is based on the commercial ability to bring people to the location at times outside of the normal working day. The area should be a place to congregate after work and on weekends with the civic benefits of a lively night time precinct being clear.
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site and surrrounding photographs
PARRAMATTA SQUARE / CONTENTS
CONTENTS CONTEXT DEMOGRAPHICS RETAIL COMPETITION PARRAMATTA SQUARE
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PARRAMATTA SQUARE / CONTEXT
CONTEXT PARRAMATTA SQUARE CITY CBD AIRPORT PENRITH HORNSBY
25KM 30KM 33KM 20KM
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PARRAMATTA SQUARE / DEMOGRAPHICS
DEMOGRAPHICS PARRAMATTA IS A DIVERSE MIX OF CULTURES IN THE ONE LOCATION
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PARRAMATTA SQUARE / CONTEXT
RETAIL COMPETITION Parramatta Square Castle Towers Carlingford Merrylands Hornsby Carlingford New Top Ryde Chatswood Burwood
CBD Bondi Warringah Mall East Gardens Miranda Marrylands Blacktown Penrith Castle Towers
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CHURCH STEET
NEW DEVELOPMENT
TRAIN STATION
PARRAMATTA SQUARE / CONTEXT
PARRAMATTA SQUARE Drivers to the Retail business: • • •
The Parramatta CBD worker market The Parramatta residential market The surrounding residential market to Parramatta Visitors to Parramatta
The Parramatta CBD worker market provides the strongest demographic segment. The CBD worker market represents the single most crucial customer segment within the development.
Worker Trade Population and Socio Demographic profile: • • • • •
Clerical and Service workers account for the majority of workers within the area 75% are within the ages of 20-49 The average per capita income at $54,000 is below other comparable CBDs 50% of workers travel to parramatta by car 25% of workers travel by train
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C B
D
PARRAMATTA SQUARE / CONTEXT
A
DEVELOPMENT COMMERCIAL TOWER with GROUND A PLANE RETAIL ACTIVATION
FUTURE ACTIVATION B FUTURE ACTIVATION C FUTURE ACTIVATION D
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The site at 169 Macquarie Street is a u spective. It should encourage a divers ic make up that is Parramatta. We beli to provide a genuine point of choice fo bound by pure geographic convenienc ed throughout the day. We believe tha on the commercial ability to bring peo side of the normal working day The ar ter work and on weekends. We see lan and a stong services retail link to the r
We see an eclectic mix of restaurants, concept activating the plaza, bringing vibrant and energetic retail experience
PARRAMATTA SQUARE / CONTEXT
unique opportunity from a retail perse retail mix, in line with the demographieve that the development should seek or consumers rather than that which is ce. We see this as retail space activatat the success of the precinct is based ople people to the location at times outrea should be a place to congregate afneway retail between the leftover spaces rail station.
, bars outdoor seating and a street food people back to the streets providing a e.
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CONTEMPORARY DESIGN
PARRAMATTA SQUARE / CONTEXT
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CONTEMPORARY FOOD STYLES
PARRAMATTA SQUARE / CONTENTS
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RETAIL Baseline Option
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a cool laneway cafe a smart wine bar opening out to the plaza an iconic food retailer to the north eastern corner and a contemporary japanese as the quality front entrance smith street tenant should be a healthy hi-quality take away along with the scents from the florist
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PARRAMATTA SQUARE / CONTEXT 1 2002
iconic/drawcard food hospitality space
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RETAIL Option 1 streetfood concepts to the western edge of the plaza a cool laneway cafe a smart wine bar opening out to the plaza an iconic food retailer to the north eastern corner and a contemporary japanese and a 2 level pavilion edged space to the eastern side of the plaza perfect for a chocolatier
espresso bar
florist
high quality street food concepts
winebar
PARRAMATTA SQUARE / CONTEXT
iconic/drawcard food hospitality space
contemporary japanese
interactive art wall
high quality chocolatier
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RETAIL Option 2 activation of smith street as a hawker style street food concept a cool melbourne style laneway cafe a smart wine bar opening out to the plaza an iconic family friendly restaurant to the north eastern corner and a contemporary japanese as the mixed with the scents from the florist at the lobby
espresso bar
florist
high quality street food concepts
winebar
PARRAMATTA SQUARE / CONTEXT
iconic/drawcard food hospitality space
high quality street food concepts
contemporary japanese
high quality street food concepts
next generation gelato
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RETAIL Option 3 activation of the plaza as a people friendly street food concept with a deliberate reference to the local multicultural demographics of the area satay skewers duck pancakes middle eastern sweets a great burger italian style pizza dutch style potatoes with mayo yum cha steamed dumplings
florist
espresso bar florist
high quality street food concepts
high quality street food concepts
PARRAMATTA SQUARE / CONTEXT
iconic/drawcard food hospitality space
high quality street food concepts
high quality takeaway
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C p Comparative i A Analysis ly i Annual Rent Comparisons 1,000,000 1 000 000
800 000 800,000 600 000 600,000 400 000 400,000
200 000 200,000 0
Baseline
FINANCIALS
Option p 1
Option p 2
Option p 3
Available Square Metres 1,200 1,200
Summary Financial Assessment 169 Macquarie Street Parramatta Commercial Site
1 000 1,000
800 600
400
200 0 B li Baseline
Opti 1 Option
Opti 2 Option
Opti 3 Option
Number of Tenancies 14 12 10 8
6
4 2 0 Baseline
Option 1
Option 2
Option 3
PARRAMATTA SQUARE / DEMOGRAPHICS
Qualitative Q li i Assessment A Summaryy
Tenancy Rental Type % of Sqm
The Financial Assessment Provides a comparative analysis p y of the "baseline" baseline model to 3 x alternatives. lt ti 100.0% 100 0% 90 0% 90.0% 80 0% 80.0% 70 0% 70.0% 60 0% 60.0% 50.0% 50 0% 40 0% 40.0% % 30 0% 30.0% 20 20.0% 0.0% 0% 10 0% 10.0% 0.0% 0 0% C B A
All models d l (inc (i the th baseline) b li ) demonstrate d t t the th financial fi i l andd commercial i l outcomes t off the different "designs" designs primarily based on the following; 1) Potential P i l Total T l "A "Annual" Annuall" Gross G Rental R l 2)) Maximum available SqM q for occupancy p y 3) Number N b off Tenancies T i 4)) Maximizing gp premium rental space p B l i th t i 5) Balancing the ttype off tenancy mix
y Analysis Baseline 32 32.9% 9% 36 4% 36.4% 30 7% 30.7%
Option 1 33.4% 4% 43 7% 43.7% 52 9% 52.9%
Option 2 80 1% 80.1% 6 6% 6.6% 13 3% 13.3%
Option 3 20 2% 20.2% 3 7% 3.7% 76 2% 76.2%
100.0% 100 0% 80 0% 80.0%
Retail Services
60.0% 60 0% %
General Retail
40 0% 40.0%
Leisure
20.0% 20 0%
Food Catering
Retail Services General Retail Leisure i F d Catering C t i Food FLG
FLG B li Baseline 0 0% 0.0% 34 5% 34.5% 24 0% 24.0% 36 3% 36.3% 5.2% 5 2%
O ti 1 Option 3 7% 3.7% 45 1% 45.1% 18 1% 18.1% 11 0% 11.0% 22.2% 22 2%
O ti 2 Option 19 5% 19.5% 22 2% 22.2% 13 6% 13.6% 7 8% 7.8% 36.9% 36 9%
Axis A i Title Titl
F accuracy each For h ddesign i option ti requires i th the ffollowing ll i iinputs t prior i to t any financial fi i l/ commercial decisions made available; * Defined D fi d number b off tenancies i * Accuracy y of lettable SqM q * Market M k t bbased d rental t l $ gross p.a p a ((model d l currently tl uses $882 per SqM) S M) * Identifying y g the type yp of premium p tenancies and discount tenancies ((if required) q ) * Providing P idi the th necessary mix i off ttenancies i (t (types tto be b identified) id tifi d)
T Types off Tenancies T i % off Rent R t
0 0% 0.0%
The current model is simply a template that can be utilized to as the design further progresses
O ti 3 Option 5 9% 5.9% 4 9% 4.9% 35 6% 35.6% 41 3% 41.3% 12.2% 12 2%
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COPYRIGHT This proposal is confidential. Apart from fair dealing for the purposes of discussion, research or review as permitted under the Copyright Act 1968, no part may be reproduced copied, transmitted in any form or by any means (electronic, mechanical or graphic) without the prior written permission of Loop Creative. It remains the property of Loop Creative and is intended only for discussion purposes only. LOOP CREATIVE Studio 55 61 Marlborough Street Surry Hills Sydney NSW Australia | www.loopcreative.com.au
PARRAMATTA SQUARE RETAIL STRATEGY