US based international footwear retailer, Foot Locker, will move from its Swanston Street home and double its floor space in Melbourne’s Bourke Street Mall.
The retailer, which has 85 stores across the country, has signed a 10-year lease for a 600sqm space at 327 Bourke Street on the corner of Causeway Lane. The rental was not disclosed.
Michael Di Carlo, Savills Victorian director retail services, who brokered the deal with Damien Abela, said the Foot Locker deal was one of a number of key tenancy changes completed in the mall over the last 12 months including Cotton On Mega moving into a new store, Optus expanding, Bardot relocating, Sunglass Hut opening a new flagship store and Michael Hill moving to the high profile corner of Swanston and Bourke streets.
“All of these changes, along with the General Pants relocation, show that large national and international retailers are still seeking high traffic strip locations where they can showcase their brand and generate strong sales,” said Di Carlo.
According to Savills Australia’s Q1 retail research, released in April, the CBD core market vacancy rate declined from 3.8 per cent to 2.6 per cent over the previous 12 months marking the fifth consecutive year of declining vacancy despite the addition of several new CBD retail centres.
Monica Mondkar, associate director research, said CBD core shop vacancies had fallen 55 per cent – since a post-GFC high recorded a vacancy rate of six per cent in March 2011 – and were expected to remain low on the back of increased spending, Melbourne’s nation leading population growth, tourism and the continued influx of high profile global fashion brands.
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