Fashion label secures new Melbourne CBD space
The retailer has moved from its 76sqm store to a 133sqm space in the same building for $185,000 per annum.
Jordan Ceppi, Fitzroys manager – sales and leasing, said there have been enquiries from national and international brands looking to secure a position in Melbourne’s CBD, particularly in a position with high foot traffic levels and quality tenants in the area.
“A bricks and mortar presence remains a key component of retailers’ plans,” he said. “Fashion retailers will always want to provide an experiential offering that encapsulates their label’s products and ideas.”
Ceppi said Melbourne’s CBD continues to attract international brands in strong numbers as well as local operators, with Danish jewellery retailer Pandora, Gucci, Louis Vuitton-owned Berluti and Burberry all signing up for new space or expanding existing CBD sites.
There has also been heightened demand for multi-storey retailing at Melbourne’s CBD, according to a recent report from property firm CBRE.
CBRE said basements and lower office floors have become the new target for retailers seeking premium CBD flagship stores in Melbourne, in an environment of low vacancy rates and high rents.
Verity Jenkins, CBRE research analyst, said a scarcity of space meant multi-storey retail is becoming the only viable option for retailers as growth in population density and tourist numbers drives spending in the CBD.
Jenkins said brands would want to operate large flagship stores which offer unique experiences, outstanding customer service and enticing shopfronts to attract and retain customers. However, current vacancy levels and the average size of a ground-floor shop are restricting these opportunities.
A recent example of multi-storey retailing is the expansion of Harrold’s on Collins Street. Due to the department store’s inability to expand into adjacent space, the 700sqm carpark below the store was converted into retail space.
The Melbourne CBD has recorded notably low retail vacancy rates recently, with CBRE’s Q1 2017 vacancy survey finding just 44 out of a total 1,869 stores were vacant.
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