Melbourne Walk redevelopment set to rejuvenate the Bourke Street Mall retail precinct

16 February 2023

Melbourne Walk (formerly known as The Walk), located right in the heart of the bustling Bourke Street Mall, flanked by the graffiti street art Union Lane and The Causeway lane, is set to strengthen the offerings at this strategic Melbourne CBD’s core retail precinct.

With construction already underway, Steadfast Capital will turn one of Melbourne’s most iconic CBD arcades into an encapsulating mixed-use retail and dual-branded hotel destination, combining the creation of a new triple-volume skylight arcade within a collection of new and heritage façades.

Colliers’ Adam Lester, Stacey Gaff, Michael Tuck and Michael Bate have been appointed to manage the leasing campaign that will secure a multitude of tenants for the approximately 6,250sqm of premium retail space in the heart of the Melbourne CBD.

“Melbourne Walk represents the next generation of Bourke Street Mall and will refresh the main retail core of the CBD and further enhance the city’s retail-laneway network with the heavy shopper, office and student foot traffic daily,” said Mr Lester.

“Over the next five years, the precinct will experience a dramatic revitalisation with major international retailers longing for a presence in prime Melbourne CBD will enter the Melbourne market via Bourke Street Mall. “Melbourne Walk presents a strong opportunity to local and international flagship brands seeking to enter the market in one of Australia’s premier retailing high streets and join retail icons such as Myer, David Jones, Zara and H&M, as Bourke Street Mall undergoes a major retail regentrification,” Mr Lester added.

Teck-Lay Tay, Executive Director of Steadfast Capital, said, “Melbourne Walk’s rejuvenation will enhance the strength of the CBD’s retail core, in particular, our comprehensive offering of retail and hospitality options will draw further patronage into the Bourke Street Mall precinct.”

With the lockdowns and border closures behind us, extensive travels resume, the retail sector saw nine consecutive months of spending growth in 2022 after welcoming back normalised trading conditions.

Colliers’ Retail Snapshots for Q4 2022 revealed that consumers are preferring to engage with physical retail experiences in favour of shopping online, as ‘online fatigue’ permeates through Australians as a result of lockdowns.

“The retail scene in our CBDs have bounced back, and with a continued concerted effort from both governments and businesses to reactivate our nation’s CBDs, we expect the full recovery to occur in 2023,” Colliers’ Associate Director of Research Nik Potter explained.

“Further supporting the recovery is the return of International tourism, which is currently close to 70 per cent of pre-pandemic levels. International tourism has seen double-digit monthly growth throughout 2022 and will continue to support spending in our CBDs,” Mr Potter concluded.