Security and Crime in Neighbourhood Centres – Simple Steps for Landlords

Having spent nearly three decades working in the Australian retail property market, I’ve seen my share of shifting challenges. But lately, one issue that stands out for neighbourhood shopping centres is retail crime.

The retail theft problem is no longer confined to occasional shoplifting. We are now dealing with a wave of organised, industrial-scale theft. Supermarkets, bottle shops, and discount retailers are on the frontline, and neighbourhood centres - often without the extensive security budgets of large regional centres - are particularly vulnerable. The escalation of crime is reshaping not only how centres operate, but also how tenants feel about safety and viability.

The Scope of the Problem

Australia is losing an estimated $9 billion annually to retail theft. Victoria, in particular, has become a hotspot, with reports of “smash and grab” raids, armed robberies, and well-coordinated gangs targeting everyday goods. For neighbourhood centres, the issue is magnified: most are anchored by supermarkets or liquor stores - categories with high theft appeal - and supported by a network of small specialty tenants who lack the resources to absorb repeated losses.

Why Neighbourhood Centres Are at Risk

Unlike large regional centres, neighbourhood centres typically operate with leaner budgets. Security guards may be limited to peak periods (if the centre has any at all), CCTV systems may be outdated, and lighting in car parks or laneways is not always adequate. Combine this with their suburban locations - often accessible to quick getaway routes - and you have a prime target for organised theft.

Neighbourhood centres rely heavily on their “everyday needs” positioning. But when tenants are losing stock or feeling unsafe, the entire value proposition of convenience is undermined. A liquor store shutting its doors at 7 pm because of repeated theft not only hurts its turnover but also erodes the night-time economy of the whole centre.

Strategies to Address Retail Crime

As asset and property managers, our role is not simply to collect rent and report on budgets,  it’s to anticipate risks and work proactively with tenants to protect value. Addressing retail crime requires a layered, collaborative approach:

1. Strengthen Physical Security

• Invest in CCTV upgrades with high-definition coverage of entries, car parks, and tenancy frontages. These are not nearly as expensive as they once were.

• Improve lighting and sightlines in vulnerable areas; crime prevention is as much about perception as deterrence.

• Explore cost-sharing arrangements with tenants for security patrols during peak risk periods. This is particularly important where your major is not contributing to this cost through their outgoings.

  
  

2. Tenant Engagement & Training

• Work with anchor tenants to establish consistent incident reporting so we have reliable data to present to police. Police allocate resources based on need – make a strong case to them.

• Provide smaller retailers with basic training on theft deterrence, customer awareness, and de-escalation techniques.

  
  

3. Collaborate With Police & Councils

• Meet with local police liaison officers and tenant representatives to discuss issues.

• Advocate through local business associations for targeted policing in known hotspots.

• Where possible, leverage council partnerships to improve public realm safety - lighting, landscaping, traffic calming.

  
  

4. Technology & Innovation

• Explore AI-driven security platforms that detect unusual behaviour (loitering, rapid entry/exit) and alert centre management in real time.

• Encourage tenants to adopt electronic tagging or RFID systems for high-value goods.

  
  

Looking Ahead

Retail crime is not a short-term issue; it is part of a broader cost-of-living and social trend that will take years to resolve. For neighbourhood centres, the key is making yourself a less desirable target. If you have obvious physical security, well trained retailers and an occasional police patrol, would-be criminals may decide to go down the road to an easier target. Ignoring the problem erodes tenant confidence, weakens leasing outcomes, and ultimately drags on asset value.

But those who tackle it head-on can differentiate their centres. Tenants value landlords who take a proactive approach, and communities feel safer in centres that visibly invest in security. This translates directly to stronger occupancy, sustained rental growth, and preserved long-term asset value.

Conclusion

As property and asset managers, we cannot eliminate retail crime, but we can mitigate its impacts. The solution lies in a multi-layered approach: strengthening physical defences, engaging with tenants, collaborating with authorities, and deploying smart technology.

Neighbourhood centres thrive on trust - tenants trusting their landlord, shoppers trusting their environment. By protecting that trust in the face of rising crime, we protect not only the viability of individual retailers but also the long-term value of the investment itself. In a competitive market, the centres that invest in safety will not just protect value - they will attract tenants, shoppers, and long-term loyalty.

About the Author Alan Baynash brings 30 years of experience in the retail property sector, having worked with private investors, institutional landlords, and leading agencies. As Principal of TPD Asset Management, he specialises in helping high-net-worth individuals, family offices, and syndicates maximise returns and protect the long-term value of their retail property portfolios.