Project leasing a new shopping centre is always tricky, but doing it in a remote mining town like Newman, in a downturn, comes with its own unique lessons and challenges.
Newman is about 1,000km north of Perth and is home to Mount Whaleback, one of the largest iron ore mines in the world. The mine is run by BHP who have had a long history and a will have a long future in the town. By 2015, however, the town faced challenges. The mining boom had ended, population numbers were dropping, residential vacancies were approaching 30% (which is hard to imagine in the current environment), and local amenities were scarce as businesses had closed. A Woolworths and some retailers served the community from the existing centre, but beyond that, variety was limited. The residents in town were feeling left behind by the lack of options.
To address this, BHP decided to invest in a new shopping centre as part of their community development initiatives. They engaged me early in the planning stages to provide leasing advice and services. Designing this centre wasn’t just about adding retail spaces as there was older retail vacancies already in the market—it was about meeting the unique needs of a community in tough economic times.
So, what did I learn and how can you apply that to your next development?
1. Tailor the Centre to the Community’s Needs
Newman’s small population and fluctuating economic conditions meant the project couldn’t follow a cookie-cutter retail model. Through surveys and feedback the community told us didn’t just need shops—they had specific needs for what was missing in a radius of hundreds of kms. The community had told us three things: there were was not a good large communal space to have a meal and a meeting during the day, the fitness options were tired and the range of goods available in the town was limited.
So, the priorities for us were the large café space where we secured the Dome. We also sourced Snap Fitness for fitness needs, and last but not least the IGA provided a much wider variety of groceries for the market and keeps Woolworths on their toes. So, understanding the unique gaps in the local offering was essential as that led to design and leasing choices we may not have otherwise made, and I think all developers and agents should spend the time to understand what the local community wants.
2. Put in the work
There is no alternative to getting out and spending time on location, especially during tough economic times. I travelled to Newman numerous times during the leasing process and got to know many of the local business owners. While there I spent time checking out the existing options and what was lacking in the area, and that led me to really understand the community’s feedback. It also required some tough conversations as there were many stakeholders without retail development experience, and so understanding and working the numbers to provide some commercial reality to those stakeholders also went a long way to achieving the outcomes we did.
Again, you must put in the time and effort, immersing yourself in the local community to understand what they need.
3. Creative Problem-Solving is Crucial
Attracting tenants to Newman during an economic downturn wasn’t easy. Generous incentives were only part of the solution. But we also had to think outside the box, like providing ideas for the tenants for accommodating their staff and transporting their goods to site, assisting them with business plans and setup costs, and going over and above to ensure that the centre was delivered as smoothly as possible.
At one stage we ran mine tours (as seen above) for prospective tenants who weren’t based in Newman so they could see the level of BHP’s investment in the town to give them certainty. All of this was out of the box thinking to ensure that the centre had the best chance of success.
Leasing this shopping centre was more than just a few transactions —it was about alleviating a community in need. Despite the challenges, the project showed the power of listening to the community, working hard and problem-solving. Today, the centre is a vital hub for Newman, and I’m proud to have played a role in its story.