Victorian based furniture retailer, Fair Price Furniture has recently committed to its seventh Victorian store, demonstrating the ongoing retailer confidence in the large format sector.
The retailer has leased a 1,080sqm showroom at Northland Homemaker Centre in Preston, joining other major retailers including Freedom Furniture, Fantastic Furniture, The Good Guys and Plush.
Chris Parry of CBRE’s Large Format Retail team negotiated the agreement, with Fair Price Furniture committing to a five year term.
Mr Parry said the Fair Price Furniture agreement followed a flurry of recent activity in the Preston retail precinct, with a number of major national retailers currently targeting this area.
“Demand for showrooms in Preston is currently at an all-time high, as witnessed with the recent leases at the Bell Street Showrooms to retailers including Adairs and Baby Bunting, agreements at 86 Bell Street, and the establishment of JB Hi-Fi, Super Amart Furniture and Beacon Lighting at 23 Bell Street. This demand is contributing to a number of Preston retail locales now boasting no vacancies.”
Market rents for the Northland Homemaker Centre range from $250 - $330sqm net and have been trending upwards.
“We believe that rents in the centre will continue to grow, underpinned by the lack of supply in the precinct and continued retailer demand - which is being driven as the centre continues to develop as the core shopping precinct for Melbourne’s northern suburbs,” added Mr Parry.
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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 (based on 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.