In a sign of confidence for the future of CBD retail, Cushman & Wakefield’s Melbourne retail leasing team has completed a series of recent deals in the discretionary retail space, in which operators have been seeking to maintain or expand their footprint and leverage favourable conditions to secure coveted locations. 

Among them is electronics retailer JB Hi-Fi, which has taken up an extra 176 square metres at 245 Elizabeth Street, allowing them to expand their physical footprint at 243 Elizabeth Street and bank on increasing footfall throughout the CBD.

Homewares wholesaler Sohum has also secured new space in the area after leasing 30 sqm in The Royal Arcade, a premium arcade running off the Bourke Street Mall. 

Recent Cushman & Wakefield Melbourne CBD lease deals: 

• JB Hi-Fi taking up an extra 176 sqm to expand their store at 243 Elizabeth Street.
• Sohum establishing a retail presence, leasing 30 sqm in The Royal Arcade.
• Danta Petz committing to 189 sqm at 261 Elizabeth Street
• Lulu's Kitchen leasing 31 Hardware Lane.
• Runway Secrets taking out 300 sqm at 88 Elizabeth Street.

245 Elizabeth Street, Melbourne. Source: Cushman & Wakefield

Other retailers banking on a return of pedestrians to Melbourne’s retail hotspots include pet goods retailer Danta Petz (189 sqm at 261 Elizabeth Street), Lulu’s Kitchen (31 Hardware Lane) and fashion retailer Runway Secrets (300 sqm at 88 Elizabeth Street). 

Cushman & Wakefield’s Michael Di Carlo, Steve Makris, Stephanie Harding and Alexia Gatti managed the retail leasing deals on behalf of the various landlords. 

Mr Di Carlo said there had been examples of retailers taking advantage of favourable market conditions to position their businesses for the inevitable rebound, despite many bricks and mortar retailers grappling with forced trading restrictions.

“They are viewing it as an opportunity to maintain, expand or secure a coveted retail location," he said.

31 Hardware Lane, Melbourne. Source: Cushman & Wakefield

Cushman & Wakefield National Research Director Tony Crabb said the trend was backed up by ABS data revealing a robust month-on-month increase during June in turnover for cafes, restaurants, and takeaway food outlets (+27.9 per cent) as trading restrictions eased in some states, indicating retail could experience a substantial rebound once trading resumed. 

“The latest ABS data clearly shows the magnitude of the rebound when restrictions ease," he said.

88 Elizabeth Street, Melbourne. Source: Cushman & Wakefield

"We can expect an element of pent up demand as people unleash their savings and domestic tourism fuels holiday expenditure on clothing and restaurants, and as CBD workers return to their place of employment.

“It is clear the pandemic is having a significant impact not only in Victoria but around the country.

"The lack of CBD workers in Melbourne has also had a marked impact on turnover in CBD locations, as has the lack of tourists and international students, while domestic tourists have also largely been absent.” 

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