Sydney is consistently ranked in the top 10 places to live for its quality of life and from a retail perspective an international retail destination, often the first port of call for retailers as they seek to establish a solid foundation in Australia for their image and brand, especially in the super prime Pitt St Mall.
In 2010/11, Pitt St Mall underwent a significant transformation with the Westfield Sydney re-development and the completion of MidCity Centre.
The success of these developments can be seen by the increased pedestrian activity through Pitt St Mall since their opening as it maintains its position as Sydney’s premier shopping destination, with more than 600 specialty stores and is ranked the most expensive retail strip in Australia.
It is understood Hype DC and Tag Heuer are paying approximately $1.5 million p.a. and $1.4 million p.a. for approximately 100sqm respectively.
Alex Alamsyah, Knight Frank’s senior director of retail leasing, said international retailers such as Zara, Uniqlo, Sephora, Forever 21, H&M, and Zara Home have taken the lion’s share in Pitt St Mall.
“There is nothing left, no more available stock on the mall except the 85sqm Politix site at MidCity with a lease expiry date in March 2015 (five years after the opening of MidCity),” Alamsyah said.
“It’s all about demand versus supply. There has been and always will be lots of demand but no supply, which means rents on Pitt St Mall will climb higher and higher. The sky really is the limit!”
Alamsyah continued to say Pitt St Mall is the undisputed most successful and strongest performing retail precinct in Sydney, well above George St, however, this might change in the future with the George St light rail/pedestrian project.
Andrew Lazarou of Lend Lease echoed Alamsyah’s sentiments.
Pitt St Mall has always been a beacon for Australia’s top tier of retail, its supply has always been limited and securing a presence on this tightly held Mall considered essential for building a strong profile in the Australian market.
This has been recognised by all the international brands and as such demand for space on this Mall has soared further cementing its ranking as the most expensive retail strip in Australia.
