Melbourne, 12 September 2013- Little Collins Street shopping precinct is stretching out of the Melbourne CBD retail core, with demand from retailers outweighing the availability of shops in the area.
CBRE’s Zelman Ainsworth said strong demand from retailers combined with a number of major developments in the area was underpinning an expansion of the Little Collins Street retail precinct, with the well-known shopping district now stretching past Elizabeth and Swanston streets.
Mr Ainsworth and fellow CBRE agent Cam Taranto recently leased a 50sqm shop at 144 Little Collins Street to local high-end fashion retailer CUBEC Clothing. The tenant has committed to a seven-year lease for an initial rental rate of $1,900 per square metre.
“Due to the strong level of interest from fashion retailers to secure a presence within this tightly held precinct, we were able to secure a quality retailer at a higher rental price,” Mr Ainsworth said.
“A number of local Australian fashion retailers have identified Little Collins Street as a trendy, thriving retail precinct that is fast becoming more popular than its biggest rival – Flinders Lane.”
Little Collins Street is already home to retailers including Joe Black, Anna Thomas, Assin, Mecca Cosmetica, Kenzo, Alistair Trung, Declic and Nudie Jeans, while CBRE is working with a number of other national and independent fashion retailers looking to secure space in the area.
Mr Ainsworth said the strong demand from active retailers in the area has supported significant rental growth in the area over the past three years.
He commented: “Landlords are consistently achieving record rents in the Little Collins Street shopping precinct as a result of the strong level of interest currently being shown towards the area.”
“CBRE is currently negotiating 50 retail leasing deals in the city – this level of enquiry and activity in the Melbourne CBD has not been so strong in years.”
Golden Age will be delivering the new Sheraton Hotel on Little Collins Street, which will include two retail shops. CBRE is marketing the new space.
Grocon and APN are also preparing to deliver the new Westpac towers, which will include a retail component on the corner of Little Collin and Russell Street.
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