Strong Leasing Deals in Melbourne’s Retail Strips

Fitzroy, Carlton, Richmond

Three strong leasing deals have landed across key inner city Melbourne shopping strips, as high-quality tenants seek out well-located spaces in locations with strong fundamentals.

Fitzroys’ Shane Mills and James Lockwood brokered the deals:

• Byron Bay-based clothing and fashion brand Afends leased 289-291 Brunswick Street, Fitzroy for six years at $130,000pa net
  
  
• In an off-market deal, açai and frozen yoghurt slingers Yo-Bar leased 271-273 Lygon Street. Retail spaces in this part of Lygon Street typically command a rental rate of around $600 to $700 per sqm
  
  
• At 224 Swan Street, Richmond, Bailey Nelson agreed to a five-year deal at $764 per sqm net

“National brands and high-quality tenants are being selective and targeting high-profile strips,” Mills said.

“When they commit, they’re doing so with confidence. We’re securing a number of five- and six-year leases with options across different strips.

“Typically these locations are the ones well-serviced by public transport, ample car parking, prominent schools and universities, and anchored by major supermarkets.”

Mills said tenants are also increasingly conscious of development activity on and around the strips.

“Development around the strips means growth in the immediate catchment, which means more people spending in the strips. We’ve seen a number of strips experiencing generational phases of development, and that has made a positive impact on traders and vacancies.

“The Victorian Government’s announcement of Activity Centres around Melbourne will likely mean a big increase in the populations in the immediacy of strips, further boosting trade and activity.”

Lockwood noted Lygon Street is seeing multiple new tenants moving in and adding new flavours to the strip – as well as Yo-Bar, sandwich specialists Hector’s Deli and Italian eatery Pasta Go Go are all opening up in the coming weeks.

He and Mills were able to secure a highly qualified tenant off-market at 271-273 Lygon Street that ensured a seamless tenant transition between occupants, resulting in zero days’ vacancy.