This article is from the Australian Property Journal archive
MORE than a dozen international brands including several European luxury fashion houses are fighting for prime retail space in the Melbourne CBD.
Industry sources have told Property Review that 171 Collins St and 71 Collins St, both at the Paris End of Melbourne’s CBD, are vying for Italian fashion house Dolce & Gabbana.
At 71 Collins St, on the corner of Elizabeth and Collins streets, space is available after the National Australia Bank moved to 71 Collins St last year after the previous tenant, luxury jeweller Cartier relocated to 101 Collins St.
Sources said the asking rent at 71 Collins St is approximately $4,000 per sqm.
Meanwhile at 171 Collins St, a combined 1,306 sqm of retail space over three levels is available for lease. The property is being managed by Fitzroys.
Dolce & Gabbana are currently in the market looking for space along with New York-based luxury handbags label Coach and Gucci. Although Gucci already has a small boutique in the CBD, at 160 Collins St, and is looking to expand.
Therefore, Melbourne CBD looks set to start 2013 just as it did in 2011 and 2012 with international labels opening up flagship stores.
In the past 18 months, Zara, Steve Madden, Swarovski, Nespresso, Thomas Pink, Vapiano, Ganache Chocolate, Topshop, Uniqlo, GAP, Forever New, Tiffany & Co have snared retail space for their boutiques.
Iconic British fashion label Paul Smith recently opened its first flagship store in Australia, at 120 Collins St, naturally at the Paris End of the Melbourne CBD.
Meanwhile Swedish fashion chain H&M and US-based Abercrombie & Fitch are still scouting for locations.
Savills retail services associate director Michael Di Carlo said demand from international brands for retail space in the Melbourne CBD remains unabated.
“New labels are trying to get in the market and existing labels are looking to expand. However retail space is tightly held in the CBD. Furthermore it is hard to find space in excess of 1,000 sqm to accommodate their requirements.
“CFS’ Emporium might secure some of these tenants. However luxury European labels want street presence, their own space, to showcase their uniqueness,” Di Carlo said.
Last year a CBRE research showed Melbourne lead the way with 25.6% of international retailers present followed by Sydney (24.3%), Brisbane (17.3%), Perth (13.6%) and Adelaide (11%).
Property Review
