Brisbane, 11 June 2013- Homemaker City Fortitude Valley has achieved 100% occupancy after securing a string of new retailers.
CBRE Associate Director, Retail Bulky Goods, Damian Crocetti has been the exclusive leasing agent for the homemaker assets for the past three years and steered the latest deals at the Homemaker City South & North Fortitude Valley complex in inner Brisbane.
Headlining the commitments was ALDI which has signed for a circa 1,500sqm supermarket while Sydney and Melbourne based retailer The Comfort Shop has also committed to a 585sqm store. Eureka Street Furniture has meanwhile leased a 791sqm showroom to add to its 17 strong store network.
The new tenants add to an already impressive existing retailer mix which includes the likes of Harvey Norman/Domayne, Freedom, Nick Scali, Trade Secret, Howards Storage, Forty Winks, Far Pavilions, Goodlife Health Club and Beacon Lighting.
Homemaker City South & North Fortitude Valley comprises 10 anchor tenancies of over 1,000sqm each in addition to 23 specialty retailers, providing a total gross floor area of 38,271sqm.
Mr Crocetti said tenants had been attracted by the centre’s high profile location, just 2km north east of the Brisbane CBD with both the South and North towers of the complex providing excellent exposure to passing traffic along the major thoroughfares of Ann Street and Wickham Street.
“The centre serves as the most centrally located bulky goods facility in the trade area and is well positioned to serve the growing residential areas of inner Brisbane,” Mr Crocetti said.
“The complex is situated in a significant and growing main trade area of 1,129,390 residents with robust 0.9% annual population growth until 2026 which will primarily be driven by the major residential urban renewal projects in the inner suburbs of Brisbane according to data from Macro Plan Dimasi.”
The centre is surrounded by a residential and commercial area, with the nearby Emporium retail and hotel development adding to the attraction of the precinct.
Other key drawcards to the locality include the boutique and high end retail offer at James Street, which includes James Street Markets, Centro on James, Palace Centro and other street based retail and commercial development in addition to new projects such as The Gasworks, which will house a full line Woolworths supermarket (opening late 2013).
Mr Crocetti said a limited supply pipeline for new bulky goods centres in south east Queensland was underpinning tenant interest in available opportunities.
CBRE’s new QLD Bulky Goods Retail report highlights that Bunnings and Masters developments account for over 90% of the circa 107,000sqm of new supply expected in 2013.
Another boost for the sector is evident in retail turnover figures which reveal some positive signs for the Queensland bulky goods market with February 2013 data highlighting a 9.5% annual rise for household goods retailing in the state, well about the 5.0% rise nationally.
“This has been a key driver for tenant demand, with vacancy tightening as stronger retailers specifically in the areas of pet care, outdoor/recreation goods and bedding expand, whilst space created during 2012 by tenant failures due to weaker business models starts to be absorbed,” Mr Crocetti said.
The CBRE report also highlights that existing centre owners are now looking more intently at diversifying their tenancy mix away from traditional bulky goods retailers – as evidenced by the ALDI deal at the Homemaker City Fortitude Valley complex and recent Woolworths Supermarket opening in the Morayfield Super Centre.
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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 2012 revenue). The Company has approximately 37,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 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 atwww.cbre.com.au.