This article is from the Australian Property Journal archive
EXCLUSIVE: AUSTRIAN luxury crystal retailer Swarovski has set a new record in history of Melbourne’s CBD retail market by paying $10,000 per sqm for space in Bourke St Mall.
Swarovski has leased the iconic store, occupied by jeweller Bevilles at 276 – 278 Bourke St Mall, which is the home to David Jones and Myers’ flagship stores.
The retail property comprises 104 sqm of retail space on the ground floor and 158 sqm on the first level.
Swarovski has signed a 10-year lease at $10,000 per sqm, which is approximately a 35% increase on the current rental paid by Bevilles. The lease will start on September 01.
The rate per sqm Swarovski has agreed to at 276 – 278 Bourke St Mall is unheard of in the Melbourne CBD and is more commonly seen in Sydney’s prime CBD retail market and ranks equal to Hong Kong, the world’s third most expensive retail destination – and is ahead of London at fourth place.
Industry sources said Swarovski was so determined to take that space that its lease does not include any rent free periods or incentives.
The latest lease to Swarovski reflects the changing face of Bourke St Mall and increases the presence of global brands in the Mall, which has attracted UK fashion label Forever New, Spanish fashion house Zara and Japanese beauty chain TokyoNoNo.
The lease was negotiated by CB Richard Ellis retail services senior manager Max Cookes. He was unavailable for comment.
The landlord was represented by Allard & Shelton’s Patrick Barnes.
CBRE’s Melbourne CBD Retail ViewPoint shows Melbourne super prime rents rose 3.1% to range between $6,200 a sqm and $7,200 a sqm in Q1, despite a slight increase in the city’s retail vacancy rate. This followed a significant 6.6% lift in rents in Q4 2010.
Australian Property Journal
