Colliers Retail Leasing Experts Report Shift in Car Dealership Providing Opportunity for Repurposing of Showrooms.
Colliers Retail Leasing experts have observed a notable shift in the car dealership market as the demand for larger showrooms diminishes in the wake of the pandemic. The evolving landscape presents new opportunities for repurposing these spaces for alternative uses.
Colliers Retail Leasing Manager, Nathan Brown, said, “During the pandemic, car sales were booming despite supply chain issues, but the demand has now shifted with normalcy restored. This has impacted the current need for expansive car dealerships as the supply chain has been restored and there has also been a drop in car sales due to rising interest rates.”
Jake Beckwith, Colliers Associate Director of Retail Leasing, added, “We are witnessing a trend where former car dealerships are being converted into various types of retail spaces. As many car dealers vacate or downsize their large sites, repurposing these showrooms has become more common.”
“These large spaces offer versatility and can be transformed into various uses, including trade centres, spacious gyms, and play centres. Many sites sit within Commercial Two Zones, which further enhances their potential for future upscale development,” said Mr Brown.
Brown and Beckwith recently secured Bowens’ commitment to a 2,586sqm lease at 537 Upper Heidelberg Road, Heidelberg Heights. The property is located at a busy corner in Melbourne’s tightly held Inner North, which Mitsubishi previously occupied.
Bowens Property and Project Coordinator Tom Simmons said, “The site is a great opportunity for us to help support and connect with our local builders in the inner North-East. With easy access from this fast-growing corridor, our new location promises to provide quick and convenient service, and one of the best ranges of hardware and outdoor timber across our network of stores.”
Another notable opportunity that is available on the market is 203-211 Keilor Road, Essendon. This prominent site, located at the corner of Keilor Road, Roberts Street and Cooper Street also in Melbourne’s Inner North, offers exceptional exposure in a tightly held market. Previously operated by Essendon Holden as an automotive showroom, the space boasts high-quality features, including air conditioning, office and boardroom facilities, staff break areas, and large hardstand for on-site parking.
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