The Melbourne CBD retail market is beginning to see some action, with Fitzroys finalising three leases in different parts of the city this week. Leasing agent James Lockwood, who heads up Fitzroys’ retail leasing team said, “Rental rates have held up extremely well in the east section of Collins Street despite the significant disruptions of the past 12 months”.

In the Paris end, Austria-based Wolford has leased 15 Collins Street. The brand has been long-established in Australia and Collins Street is a good fit for its positioning in the market. Fit-out of the 80sqm shop will commence in early June to showcase the just-released 2021 international store format.

Leasing agent James Lockwood, who heads up Fitzroys’ retail leasing team said, “Rental rates have held up extremely well in the east section of Collins Street despite the significant disruptions of the past 12 months”.

In central Collins Street, jewellery manufacturer and retailer Ostara has taken a five-year lease at 271 Collins Street, a building also known for the Peter Sheppard flagship store.

Lockwood said that this unusual deal involved the tenant leasing the whole 610sqm of the stunning heritage mezzanine level of the building. Two 27-metre galleries link the Collins Street and internal frontages of the premises with access via the building arcade that runs between Collins Street and Flinders Lane.

In the north end of the CBD, a third lease has been signed off by mobile phone and repair retailer GorillaSix at 309 Swanston Street. The high rental rate of circa $5,000 per sqm reflects the size of the tenancy, which is a diminutive 33sqm. The tenant is another Sydney retailer that has opted to expand in Melbourne.

“Despite the universities still in the process of reopening, occupancy levels in this north section of Swanston Street are very high with only three or four shops still to reopen post the COVID shutdown,” Lockwood said.

In a sign of positive news to come, Fitzroys has several more CBD retail leases close to finalisation. Lockwood is very encouraged by the levels of inquiry but notes that Landlords have had to meet the market in some instances.

“These deals did not involve substantial discounts on rents being paid pre-COVID. In other instances however, compounding annual increases in previous years have seen rentals get ahead of market levels and in some cases rental reductions of up to 30% and sometimes more have been necessary to generate tenant interest.

“Incentives are also still an important part of the transaction but the main thing is that we have enquiry – and most of this is from quality retailers with good experience and often multiple outlets that we are comfortable to recommend to our clients.”

3 Melbourne CBD retail lease deals:

• GorillaSix leased at 309 Swanston Street. 
• Austria-based Wolford has leased 15 Collins Street.
• jewellery manufacturer and retailer Ostara has taken a five-year lease at 271 Collins Street.

To request a lease analysis on any or all of the above 3 lease deals please email the leasing agent via the below contact form.