Specialty coffee house, Workshop Brothers, is set to open it second Melbourne CBD store after securing a hole-in-the-wall cafe space on Collins Street.
Workshop Brothers has signed a seven-year lease on the 18sqm space at 410 Collins Street, which is located behind China Construction Bank’s retail branch and opposite the renowned Mitre Tavern.
The space, which sits above one of Melbourne's major power stations, was formerly used as the bank's storage facility.
CBRE’s Tan Thach and Samantha Hunt negotiated the lease on behalf of a private investor for a rental of $60,000 per annum.
Mr Thach said Workshop Brothers, like other operators immersed in Melbourne's food and coffee culture, were looking for trendy locations to branch out from flagship stores and increase their brand presence.
“There have been a number of interesting cupboard-sized cafe deals in recent years,” Mr Thach said.
“Switch Board Cafe occupies a switchboard cupboard in the Manchester Unity building, Saluministi has secured a former car park ticket office on Flinders Lane and Black Velvet Espresso is operating its business tucked on the side of the136 Exhibition Street foyer.”
Mr Thach said there were still many cafe operators looking for miniature spaces in the tightly held Melbourne CBD retail market that provide an attractive price point for tenants, yet offer a higher rate per square metre for landlords.
“Due to the low vacancy rate and high demand from retailers in recent years, landlords are being creative with their properties, transforming unexpected locations into useable retail spaces,” Mr Thach said.
CBRE’s Director of City Sales Josh Rutman said: “With some costs like land tax increasing this year, owners are looking for ways to increase the income generating potential of their assets.
“With yields currently sitting at record lows, slight increases in income can have a wide-ranging impact on capital values. In this instance the increase could be over $1 million in value.”
Workshop Brothers has signed a seven-year lease on the 18sqm space at 410 Collins Street, which is located behind China Construction Bank’s retail branch and opposite the renowned Mitre Tavern.
The space, which sits above one of Melbourne's major power stations, was formerly used as the bank's storage facility.
CBRE’s Tan Thach and Samantha Hunt negotiated the lease on behalf of a private investor for a rental of $60,000 per annum.
Mr Thach said Workshop Brothers, like other operators immersed in Melbourne's food and coffee culture, were looking for trendy locations to branch out from flagship stores and increase their brand presence.
“There have been a number of interesting cupboard-sized cafe deals in recent years,” Mr Thach said.
“Switch Board Cafe occupies a switchboard cupboard in the Manchester Unity building, Saluministi has secured a former car park ticket office on Flinders Lane and Black Velvet Espresso is operating its business tucked on the side of the136 Exhibition Street foyer.”
Mr Thach said there were still many cafe operators looking for miniature spaces in the tightly held Melbourne CBD retail market that provide an attractive price point for tenants, yet offer a higher rate per square metre for landlords.
“Due to the low vacancy rate and high demand from retailers in recent years, landlords are being creative with their properties, transforming unexpected locations into useable retail spaces,” Mr Thach said.
CBRE’s Director of City Sales Josh Rutman said: “With some costs like land tax increasing this year, owners are looking for ways to increase the income generating potential of their assets.
“With yields currently sitting at record lows, slight increases in income can have a wide-ranging impact on capital values. In this instance the increase could be over $1 million in value.”
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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 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 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.
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 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 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.
