Retail vacancy space remains tight

NATIONAL: A spate of rate rises and the US credit crunch has failed to deter Australian retailers from seeking rental space, new research has shown.

The report, produced by real estate money management firm Jones Lang LaSalle (JLL) , found that in the December quarter vacancy lebels around the country remained at near record low levels.

JLL national retail research director David Snoswell said despite the wavering market sentiment, the underlying fundamentals of the retail sector remained solid.

Snoswell said low vacancies and continued expansion by retailers was encouraging solid positive rental growth in all retail markets around the country.

"Vacancies have been trending downwards for much of the past 10 years and are currently averageing 1.6 per cent nationally amongst neighbourhood, sub-regional and regional centres."

Snoswell said looking forward there was likely to still be concerns on the investment front however the fundamentals for retailers and the retail property market would remain solid.