The demand for regional bulky good tenancies has been strong over the first half of 2012 despite flat retail trading.

CBRE senior negotiator, retail bulky goods, Shane Cook said the majority of bulky goods lease deals done this year had occurred in regional NSW locations.

“Demand has come predominantly from local independents, and company backed national retailers with CBRE agreeing terms or leases completed on eight recent deals totalling circa 9,459 square metres across regional NSW,” Cook said.

“In addition, the closure of Sleep City and Everyday Living has created new opportunities for retailers with some committing to these larger, well located sites.”

According to CBRE, the demand for regional bulky goods retail space can also be attributed to a number of factors including a prolonged period of minimal drought in the state, the strong rally of the Australian dollar and the revival of some regional centres.

Among the recent regional deals, Loot Homewares has taken up 322 square metres on a five year term within the West Gosford Hometown centre while Beds R Us has committed to 822 square in the same centre on a five year term.

Loot Homewares and Beds R Us join tenants with the centre including BCF, Petbarn and Beacon Lighting.

“The bulky goods landscape is changing with tenancy mixes far more diversified than they were previously. Retailers breathing new life into bulk goods centres include outdoor retailers, pet retailers, speciality homewares, manchester and bulk chemists,” Cook said.

Other recent regional NSW bulky goods deals include Pet Barn taking up 1,164 square metres in Shellharbour and Pillowtalk recently taking handover for 1,800 square metres of space within Tamworth Homespace.

Bing Lee has also opened a number of stores in regional locations such as Bathurst, Taree and Tamworth adding emphasis to this current trend.