In a tight LFR market, ‘built form’ opportunities are rare but worth the premium

The Large Format Retail sector is navigating an environment defined by unprecedented scarcity. With vacancy at historic lows and new greenfield development constrained by construction costs and planning complexities, built-form tenancies are becoming a premium commodity.

That scarcity is shifting how Large Format Retailers think and move, according to Zac Dean, Director of Brisbane-based KD Special Projects.

Zac Dean’s experience spans both sides of the fence, working with developers and landlords while also representing national tenants. That dual perspective, he says, helps him anticipate what each party needs to make a deal happen, from site selection, sales and leasing negotiations, evaluating market trends and analysing demographic data.

Across Queensland, existing Large Format Retail assets with minimal delivery risk and the promise of faster store openings are being snapped up. Increasingly, tenants are paying premium rents for locations that allow them to open quickly.

“Retailers are still expanding, there are plenty of active requirements, but the traditional model of greenfield growth isn’t always viable right now,” says Mr Dean. “A built form tenancy that’s available, well-located, and ready to trade does command strong interest and strong rent.

“This is because it presents a rare opportunity to seamlessly integrate into an established retail centre, offering a plug-and-play setup that allows for immediate operation.”

For Large Format Retail sector players, this signals that the market is adapting and that premium locations, be they in regional centres or metro areas, are commanding the attention they deserve.

Mr Dean added, “For retailers, built-form tenancies offer immediate market access while helping mitigate construction and planning risks.

“For developers and landlords, these assets are increasingly valuable, drawing stronger demand, higher rents, and fiercer competition.”