Shopping Center Management 4 Defries Avenue, New South Wales 2017

 Executive summary

East Village is located on 4 Defries Avenue, Zetland, New South Wales 2017. The shopping centre is part of new mixed-use development and was awarded. Types of propjet eight storeys includes: retail, commercial and car parking uses with residential units (CoreLogic 2020).  The construction was started in October 2012 and completed in October 2014. East Village is a sub-regional shopping centre in Sydney Central Business District (CBD) including over 50 retailers, 6.7 million annual customers visiting and 32,961sqm Gross Lettable Area (GLA).

Introduction

East Village shopping centre is located on 4 Defries Avenue, Zetland, New South Wales 2017. The location is an inner-eastern suburb of Sydney. From Sydney Central Business District (CBD) and Sydney international airport to the shopping centre is approximately 4 kilometres.

The East Village car park is providing ticket-less secure parking for the customers. The facilities uses approximately 671 parking spaces, with two hours of free parking. The car park opening times stating from 6.00 am-12.00 am Monday to Friday. The car park space makes their customers easier to access shopping. They also provide a free electric vehicle charging station for the customer to use as long as they wish during car park opening times. The centre management of East Village trading hours open Monday to Thursday between 9.00 am to 9.00 pm and, Friday to Sunday from 9.00 am to 500 pm. It does not open on public holidays.

East Village centre is also called Victoria Park. The site of Victoria Park is 24.5 hectares includes residential with 2- or 3-bedroom apartment and terrace, and commercial and retail and shopping centre. Therefore, for this center will discuss the location and sustainability aspects of the center, the tenancy mixes and overall operation, demographic profile and financial analysis.

Physical location and sustainability aspects of the center

Physical location is a significant consideration for both buyers and sellers. The East Village shopping centre is can accessible by public transport. Therefore, the maps below will illustrate the approximate distance of the public transport service from the shopping centre to Sydney CBD, Airport, University and neighbourhood.  

At East Village provides the ‘ticket-less’ secure parking facility use for their customers. There are two hours free parking with the estimates 671 of the parking space, and 17 pram parking car spaces located close to the lifts. The amenities at East Village are located on Level 1 near Terry White Pharmacy, Level 1 near Lifts and at Level 5. Also, disable toilets are located at the same Levels such as level 1 and level 5. Also, the parent’s room on a level 1 TerryWhite Chemmart Pharmacy only. Furthermore, the outdoors of East Village shopping Centre are available amenities in surrounding areas. For example, at Victoria Park includes: Bubblers, public toilets, benches, rubbish bins. 

They need to find out the proximity competitors. The competitors are different peoples or companies out there who offer similar goods and services. Therefore, East Village competitors are including: Project types, details, gross leasable/floor area and completion date (CoreLogic 2020) as follows:

1.     SICEEP Darling Square is a mixed-use of Residential Building in North-East Plot Darling Square NSW. The construction of podium elements included 2,011sqm of retail space on the ground floor and levels 1-5 for residential and apartment. This construction completed in 2017.

2.       Barangaroo South Commercial Building C5 - Tower 3 - International Towers Sydney locates Lot 5 Hickson Rd-Barangaroo NSW. Construction of a 39-storey commercial building with a maximum GFA of 90,539sq m, comprised of 83,760sqm commercial floor space, 5,315sqm retail floor space, 1,370sqm office lobby, & 94sq m of floor space within basement.

3.     Euston road Mixed Development- Alexandria NSW. There are 47 units, four retail and four storeys were completed in 2015.

4.     350-352 Bourke St Mixed Development - Short Lane Surry Hills Suburb NSW. The construction includes 8 storeys mixed building with 2 ground levels retail units completed in 2016.

In addition, the sustainable development is the people must live and meets the needs without compromising the ability of future generations to meets their own needs (UniSA 2020). Therefore, the development of the sustainable aspect of the East village shopping centre designed to be an environmentally friendly element (City Futures Research Centre, 2016). For example, a bio-retention swale system for stormwater treatment and management. Furthermore, the East Village shopping centre is also used sustainable designed construction and materials includes the use of renewable building materials and recycling of demolition materials. (City Futures Research Centre 2016) as follows;

1.  Passive solar access
2.   adoption of energy efficiency strategies like cross-flow ventilation
3.  maximum comfort and utilization skylights for vertical is a natural lighting
4. high comfort diffusion systems
5. low emission floor finishes
6.  painting and laminating
7.  the more contribution to the indoor retail environment is air quality
8. Very internalized and artificial under air-conditioned space

However, the East Village centre could be not categorised as a sustainable building because people do not know more details about the business activities they are doing.

Tenancy mix and overall operations of the center

Tenancy mix refers to the mixed of retailers of the shopping centre and manager of their shopping centre who are occupying the space creates significant sales in term of rents, ability to financial resource and services to the community (UniSA 2020). The tenancy mix is important to work together in terms of attracting more customers. Therefore, it can be including the numbers of stores, and industry like, sport, fashion footwear health and beauty are available. Those all are 56 stores in the East village shopping centre, but for this purpose only use five major stores/tenants who are occupying includes, stores name, Gross Leasable or Floor Areas and floor plan show on map (4) bellows.

No	Name of tenants	Gross Leasable Areas/sqm
1	Audi	13,172sqm
2	Virgin Active	4,835sqm
3	Coles	4,015sqm
4	East Phoenix	1,280sqm
5	Montessori Academy	1,173sqm

  Furthermore, the reason for visiting shopping centre with different reasons by people different people. Such as, buying groceries, eating out, having drink, banking cash withdraw and meeting friends or clients relate purposes. However, one of the main reasons people visiting this purpose centre is for eating and buying groceries. This is because Coles supermarket on the ground floor where people groceries, and restaurants inside the building for eating out.

In addition, some of the positive aspect makes people do shopping are convenience for parking, for fun, on sales, getting good product and good deals. So, the main reason people go shopping in the East Village is because a convenience for parking. There are 671 car spaces for both customers and investors. In term of attracting more customers tenancy and manager of the East Village shopping center must works together. For instance, promotion and advertising goods and services changes another tenant on sale. This is because they are at the same location so that it can be affected one another.

Besides that, the manager of the shopping and tenants must work together to know the factor required in the shopping center. For instance, the numbers of customers who are visiting are satisfied with the shopping center or not and what goods and services. Therefore, the survey to ensure that they are satisfied, if not then, they must know what they have to improve sales aim for satisfying needs and wants as well as attract more customers at this shipping center. 

Demographic profile of the surrounding localities; those areas that may fall into the “catchment areas” of the center

 Demographic analysis useful to identify who are the potential buyers/shopper of the East Village shopping centre in Zetland (MBA Skool Team 2013). Therefore, it needs to provide the information such as, population, employment, income level, and the price of weekly rental. This is the important consideration for both manager of the shopping centre and tenancies to knows their potential customers there. This analysis includes, the population, employment, education, weekly income, family and dwellings in Sydney Local Government Areas include in Zetland Suburb.

 According to Australia Bureau of statistics (ABS) (2016), people lives in Sydney local government areas were 208,374. In term of this, 51.8% were male, and 48.2% were female and the median age was 32 years. 37.4% were attending education institution, 88.1% were occupying private dwellings. Furthermore, 62.2% were private rented, and 77.1% were living in apartments. Furthermore, the majority of people in Sydney CBD worked full time were 65.3%, the personal weekly income was $953 and median weekly rent $565.

 Based on those ABS data above, it can see that the number of people, employment and other factors will significantly affect purchasing power in the area. There are institutional servicers and communities’ facilities to access by customers or residentials in Zetland. For example, they can access Montessori preschool, Catholic secondary college, the MiHealth medical centre, pathology and psychology services, clinic and other medical services.

 Furthermore, East Village shopping centre provide services such as, Westpac bank, Optus, chemist and message facility. The community facilities in the suburb include Victoria park, Joynton Park, Green square library and neighbourhood facilities. Due to those facilities, more people are renting in this suburb. Besides that, another reason people rent in Sydney CBD they have access to public transport to everywhere includes a shopping centre, parks, university. For example, from the East Village shopping centre to New South Wales University only 12-minute drive by public transport.

 The target market of East Village shopping centre is the residentials in this suburb, and these people will come to Victoria park or shopping centre.  Many people are visiting in Victoria Park, and this one of the considerations to purchase goods and service in East Village shopping center. 

Conclusion and recommendations

In conclusion, the overall point of views based on property asset managements the management of East Village shopping center currently has no significant issues to improves. The physical location and sustainable aspect of this shopping center are on the excellent and people can easily to access, and designed construction uses sustainable materials interior or exterior of the building. The overall operation and tenancy mix saw that they are worked as a team to attract their customer. There are over 50 retail stores under the East Village shopping center, but five major tenancy occupy more gross leasable or floor areas. In term of demographic, there were 208,374 who live in Sydney local government areas. The majority of them are rented in the apartment and works full time. Then current and proposed market net rent are increased per sqm by annually. But, the investment expenditure is more than profit therefore, the return on investment is poor.

Recommendations, the East Village shopping center classified as sustainable building, therefore, they must continually preserve the interior and exterior of the building, Victoria Park or neighborhood parks. Also, advised the business activities to keep the shopping center as a sustainable building of their action because at the moment we are not sure the activities the business taking.

 

References

 Australia Bureau of statistics (ABS) 2016, Census QuickStats Sydney’s 2016, cat.no. 17200, ABS, Sydney. <https://quickstats.censusdata.abs.gov.au/census_services/getproduct/census/2016/quickstat/LGA17200?opendocument>.

City Futures Research Centre, 2016 ‘Planning and Building Healthy Communities, Healthy Neighbourhood Audit for Victoria Park Data Report 2016, University of New South Wales, viewed 05 October 2020.

CoreLogic 2020, Project Details, Cordell, viewed 5 October 2020,<https://www.cordellconnect.com.au/public/project/ProjectDetails.aspx?uid=755128>.

East Village 2020, Stores, Centre Management, viewed 5 October 2020,<https://www.eastvillage.com.au/stores/centre-management>.

Koichitakada 2010, East Village Retail, Project, viewed 6 October 2020,<http://koichitakada.com/projects/east-village-retail/>.

Misvac 2012, Our Assets, Retails, viewed 5 October 2020,<https://www.mirvac.com/retail/our-assets/east-village>.

MBA Skool Team 2013, ‘Catchment Area Analysis: Finding the Right Place’, mba sKOOL, 12 August, Viewed 6 October 2020,<https://www.mbaskool.com/business-articles/operations/7795-catchment-area-analysis-finding-the-right-place.html>.

University of South Australia (Unisa) 2020, Shopping Centre Management

retailing principles BUSS 2069, University of South Australia, viewed 7 October 2020, <https://lo.unisa.edu.au/mod/book/view.php?id=2191349&chapterid=281278>.