Melbourne jewellery retailer, Kozminsky, has closed its Bourke Street store after almost half a century of occupying the iconic CBD retail front.
When Kurt Albrecht bought the business in 1969, it sold rugs, paintings, furniture and objets d’art, along with jewellery. In recent times, the business exclusively sold jewellery, specialising in diamonds.
“With retail vacancies within the Melbourne CBD core tightening up year-on-year and currently sitting at about 2.4 per cent, we are seeing further expansion and rental growth through all other sectors of the CBD retail scene,” said Jarrod Herscu, who along with Cam Taranto of Colliers International are handling a international retail leasing campaign on behalf of the well-known private landlord.
Taranto said Colliers was expecting large enquiry driven by hospitality operators, which comprised about 80 per cent of deals in 2016. He said they are seeing super hospitality groups, both national and international, including Urban Purveyor Group, PTT Family, Dixon Hospitality, The Publican Group and Seagrass Boutique Hospitality Group, all looking to expand rapidly and even looking to acquire other businesses to gain market share.
“This was the case with Urban Purveyor Group acquiring Neil Perry’s Rockpool and Dixon Hospitality acquiring The Keystone Group in late 2016,” he said.
Herscu said they are seeing a huge influx of enquiry from international brands along Bourke Street Mall, including Apple, Google, Victoria’s Secret, Kit and Ace, Suitsupply, Rag & Bone, West Elm and COS, all looking for their first Melbourne CBD flagship or additional space.
“In addition, due to low vacancy rates, a growing CBD population and strong retail-trading conditions, we are seeing record rentals in the Melbourne CBD.
Colliers International will also be targeting the beauty industry in its campaign, which Herscu said was one of the strongest-performing segments in the market, as well as jewellery, fashion and accessories.
“In addition, due to low vacancy rates, a growing CBD population and strong retail-trading conditions, we are seeing record rentals in the Melbourne CBD.
“The latest deal is a new flagship joint venture between international brands Nike and Footlocker (Hoops), which are paying approximately $10,000 per square metre, a new rental benchmark for a non-corner site in the mall.”
Herscu said Bourke Street presented “an invaluable opportunity for a new tenant to take advantage of the corner location of a Melbourne CBD icon.”
“This elegant building has a long association with the livestock and real estate industry in Melbourne’s early days and the banking boom in its later days,” he said.
“It now rings the successful association of Kozminsky, who operated in the building for more than 40 years.
“Colliers International is extremely excited to run this unique leasing campaign to determine the highest and best use for a retail building with a storyline dating back to 1869.
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