Lowering rent prices would address a symptom, but not the cause of shopfront vacancy in the CBD, according to the Launceston Chamber of Commerce.
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In a poll conducted by The Examiner asking what needs to be offered to help revitalise the CBD, about 36 per cent of respondents answered lower rent for shops.
This was closely followed by free parking at 35 per cent, children's play equipment at 6 per cent, mobile food vans at 6 per cent, and more entertainment at 3 per cent.
About 13 per cent of respondents selected an 'other' option. Almost 300 people responded to the poll.
Chamber chief executive Neil Grose described high rent prices as a "double edged sword" for both retailers and property owners.
He said discussions over vacancy rates often masked other opportunities, including the development of vacant second storey properties into apartments.
"Retailers of course need the lowest rent, but property owners also need a rate of return to justify their investment in the property," Mr Grose said.
"Council also rely on the rating revenue from commercial property, which is calculated on property value, which is in turn determined by the rental return.
"Many landlords I’ve spoken with have moved to meet the market with rental rates in recent times.
"Businesses like TasCity Building are doing amazing work at developing inner city living opportunities and if the population of the CBD were to increase by several hundred, it would have an amazing positive impact on the CBD vitality."
Launceston recorded the highest growth in property value for regional areas in Australia, according to a recent CoreLogic report.
While shopfront vacancy rates are estimated to be about 10 per cent – down from 14.4 per cent in 2014 – Mr Grose said some areas remained higher than others.
"Areas like the Kingsway are at 100 per cent occupancy, a quite rare feat for that area," he said.
"Yet traditional thriving retail and hospitality areas like the Quadrant currently have a very high vacancy rate."
A report commissioned by the City of Launceston investigating steps to ensure a vibrant CBD retail environment, is expected to come before councillors in April.
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