Construction: cheaper, faster and with less risk

s, the need to adapt to a fast-evolving retail landscape has never been more critical. Most of our clients see this too. Retailers, developers, shopping centre owners and landlords are acutely aware of the challenges in retail. We are very mindful of the predicament our clients are facing and conscious of our role in helping them navigate these choppy waters. This is a time of structural change for the sector. Increasingly rapid evolution has given rise to actual retail revolution. Buzzwords perhaps, but there’s no denying the magnitude of the changes we’re all facing. We are fortunate that we count among our clients some of Australia’s best known and most progressive retail operators. We recently surveyed some of these clients to better understand their perspective on the current state of the market. There was some consistency in the pain points identified: • Subdued investor appetites for retail • Tough debt markets with banks applying strict rules on lending • High retail rents coupled with greater uncertainty on the tenant side • Questions about the validity of the franchising model • The pending impact of a drop in rents on valuations • The need to re-weight tenant mixes to include a greater focus on experiential retail and to account for disruptors in the retail sector. Despite these concerns, we learned that our customers have a firm eye on new opportunities. Their optimism cannot be quelled. For some, the opportunity to buy sites for retail use is re-emerging as the residential market falls away. Some retailers are working hard to improve their distribution processes and opening up the supply chain. We are seeing more shopping centres generating their own power to be supplied to tenants. Increasingly, the line between retail and community uses is being blurred, as shopping centres evolve into community meeting spaces with access to childcare and medical services. There’s also the potential for mixed-use to take on a broader definition, with retail potentially blended with commercial, aged care and even industrial uses in the future, instead of just residential. The point is, it seems leading retail operators are up for the challenge. We feel it’s only right that we, as construction specialists, pitch in as well. So how can builders help customers navigate the retail evolution-revolution? First, we must understand what they need. Our clients need things built more efficiently. Cheaper and faster. They need flexibility, reliability and consistency, all at minimum risk. It’s a regrettable fact that traditional design and construction processes result in a lot of wasted time and money. In today’s climate, there is no time or money to waste. One approach we are pioneering is detailed data analytics. We are capturing and analysing data on the entire spectrum of retail projects. It enables us to search out opportunities while mitigating risks. We’re using this data-based knowledge to help optimise designs while also eliminating re-work and duplication. This is just the start: it’s cheaper and faster with less risk. While it won’t alleviate every pain point, builders, through data analysis, can have a significant impact on construction costs and risks, especially when engaged early in the design phase. SCN