Melbourne, 21 February 2016 – Babyco, a subsidiary of New Zealand’s largest baby retailer The Baby Factory, has leased a 702sqm site within one of South Morag’s premier retail destinations - the Axis Centre.
The site, which is located at bustling “axis” of McDonalds Road and Plenty Road, offers ample parking, high exposure to passing traffic and positioning alongside national retailers including Spotlight, Best Friends and Rays Outdoors, which ensure consistently strong foot traffic to the centre.
CBRE’s Chris Parry negotiated the agreement in conjunction with Leo Mancino of CVA, on behalf of Vel Axis Investments Pty Ltd who acquired the property in 2012 from the developer Walker Corporation.
Mr Parry said Babyco leased the space to take advantage of the rapidly growing population in Melbourne’s north, which is largely made up of young families.
“Babyco is the latest in a series of baby goods retailers choosing to expand recently, following brands such as Baby Bunting which established several new destinations in 2015.”
“In a deal negotiated by CBRE, Baby Bunting established one of its first regional stores at the Rocklea Homemaker Centre in 2015 and we predict further children’s brands will continue expanding in growing regional areas throughout 2016,” said Mr Parry.
“Landlords have increasingly been embracing baby goods retailers in homemaker centres, in an attempt to diversify the retail offering for consumers, de-risk their income and take advantage of the planning reforms introduced in Victoria in 2012,” Mr Parry added.
Industry sources suggest the rent rate for showrooms in the area range from $180 - $230 per sqm.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.