Melbourne, 04 November 2013-International fashion retailer Rhodes & Beckett has renewed its lease at 495 Collins Street in a deal indicating growing confidence in Melbourne’s CBD retail precinct.
Located at the ground floor retail of the InterContinental Hotel in the heart of the Melbourne CBD, the 105sqm shop is strategically located with high brand exposure and within close proximity to the city’s most prominent office towers. Rhodes & Beckett has renewed its five-year lease at an annual rental of $1,461sqm.
CBRE’s Zelman Ainsworth, who negotiated the deal in conjunction with fellow agent Cam Taranto, said the property’s central location was a key factor behind the deal.
“This store adds to Rhodes & Beckett’s exposure on Collins Street, with their other outlets strategically located next to Cartier at 101 Collins Street and alongside Thomas Pink at 333 Collins Street,” Mr Ainsworth said.
“The Rhodes & Beckett store at the west end of Collins Street will add value to the already established tenancy mix in this precinct.”
Mr Ainsworth said the boundaries of Melbourne’s CBD were now being stretched towards to the west due to the emerging Docklands precinct, which was continuing to attract a large number of corporate commercial and retail tenants.
“Traditionally, retail businesses have targeted the core CBD precinct, clustering around locations such as Swanston Street and Elizabeth Street, with luxury brands flocking to the ‘Paris end’ of Collins Street and international fashion labels zeroing in on Bourke Street Mall,” Mr Ainsworth explained.
“However, a shift is occurring as owners of the larger corporate office towers situated at the western end of the CBD identify opportunities to activate the retail component at the foot of their buildings.”
Mr Ainsworth said four major retail projects at the western end of the CBD were delivered to the market in the past 36 months – opening up a flurry of retail opportunities in the precinct.
He explained: “10 quality retail operators have secured space at the newly redeveloped NAB building at 500 Bourke Street, while in a separate project, nine retailers have taken out leases at the InterContinental Hotel on Collins Street.”
Approximately 40 major national retailers have been secured on long term leases at the Southern Cross Train Station and 17 premium retailers now complement the 357 Collins Street tower, including luxury fashion retailer Thomas Pink.
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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.