Collins Arcade set to transform Collins Street’s iconic retail heart

Collins Street Facade — “Collins Arcade will reclaim this property’s prominence in Melbourne’s CBD.” (Source: Collins Arcade)

By Collins Arcade June 24, 2025

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In a bold move poised to reshape Melbourne’s CBD retail experience, the long-anticipated transformation of 260 Collins Street is entering its final stages.

Reopening this coming spring as Collins Arcade, the project signals not just a facelift, but a retail revival with purpose – capping off the final piece of Collins Street’s retail ecosystem.

With over 80 per cent of the precinct now leased, Collins Arcade is more than just a retail refresh, it’s a statement. Designed to be an accessible, high-energy nexus of entertainment, dining, wellness and iconic fashion brands, it bridges the retail disconnect between the city’s luxury Paris End and its buzzing urban laneways. For the first time, locals, workers and tourists will find a truly integrated precinct that reflects the local lifestyle in one sleek location, including the activation of the quintessentially Melbourne Dame Edna Lane on Little Collins Street.

At the heart of the Arcade’s resurgence is a targeted tenant mix that reflects the modern consumer’s lifestyle that is deliberately curated to meet demand that previous site iterations failed to satisfy. This next chapter, backed by partners Kaipara Property Group and UBS Asset Management, reflects a sharper vision that’s fit-for-purpose.

“Collins Arcade will reclaim this property’s prominence in Melbourne’s CBD,” said Kaipara joint managing director, Toby Daniel. “We’re providing a mix to attract people to the CBD and encourage them to stay for a while.” Finally, Collins Street can lay claim to an entertainment, co-working and culinary destination under one roof at Collins Arcade.”

Leading the charge is entertainment giant Kingpin will bring 3500sqm of cutting-edge entertainment for all ages to the basement, while Waterman Workspaces will introduce 2000sqm of coworking space on Level 2. Food and beverage, wellness, and athleisure brands are also signing on, ensuring every level of the arcade is pulsing with activity.

These deals, orchestrated by Zelman Ainsworth of Ainsworth Property, have been instrumental in repositioning the property into a multi-dimensional precinct designed for dwell time, not just retail transactions.

Fashion heavyweights MJ Bale, Saba, Kathmandu, and 2XU have secured flagship locations, adding sartorial flair to the revitalised precinct alongside Le Yeahllow – one of Melbourne’s leading cake shops and patisseries, which featured on Masterchef Australia. They join long-standing street-facing tenants, including TAG Heuer, Swatch, and Birkenstock, who have continued to trade throughout the construction.

Meanwhile, Priceline Pharmacy is anchoring the new health and wellness precinct on Level 1 with a 10-year lease over 700sqm. Priceline will be joined by a Healius pathology clinic, with additional complementary beauty and wellness operators including Yuki House, Time for Beauty and D&Y Hair, with others in final negotiations, collectively building a much-needed inner-city health hub.

With prominent construction firm Buildcorp on track to complete works in spring 2025, Collins Arcade’s debut will coincide with the launch of nearby major infrastructure projects, including Town Hall Metro Station and new hotels like Holiday Inn and Hotel Indigo, all within walking distance.

The design, led by renowned global architecture and design firm Buchan, infuses the space with a signature Melbourne aesthetic: Authentic, atmospheric and highly connected. The once-closed internal arcade linking Collins and Little Collins Streets will now provide an effortless, vibrant flow, reviving the corridor from Flinders Street Station through to Bourke Street Mall.

The reopening comes as Melbourne’s CBD is enjoying promising increases in foot traffic and vacancy rates tightening to 6 per cent in late 2024. Last year’s Boxing Day sales hit a record $1.3 billion, further reinforcing consumer appetite.

For Kaipara and UBS, the timing couldn’t be better.

“Leasing demand continues to accelerate as the vision for Collins Arcade becomes reality,” said Daniel. “This project is about more than leasing space and shopping, it’s about restoring energy, relevance, and innovation to this prime CBD pocket.” Limited leasing opportunities remain.