This article is from the Australian Property Journal archive
THE Melbourne CBD retail property market has been buoyed by two major leasing transactions, with JD Sports signing the largest leasing deal of 2024 whilst a high-end restaurant has paid a record rate for a basement.
Apparels and fashion retailer JD Sports has confirmed its commitment to Melbourne Walk while the former site of iconic restaurant Izakaya Den is set to reopen under new ownership as a high-end Japanese restaurant.
JD Sports has secured a flagship store spanning over 1,600 sqm across two levels of the redeveloped Melbourne Walk, which fronts onto Bourke Street Mall. This lease, negotiated by Colliers, represents the largest retail leasing transaction in Melbourne’s CBD for 2024.
Although this its second location, the Melbourne Walk store will be JD Sports’ largest Australian flagship store.
Hilton Seskin, Chairman of JD Sports ANZ, said the new store’s prime location in the bustling Bourke Street Mall was key to the company’s strategic growth in Australia.
“Melbourne Walk presents the perfect opportunity to tap into the city’s vibrant, fashion-forward culture, offering an ideal space for our largest global flagship store,” he said.
The development, which is part of a major 50-year redevelopment of Bourke Street Mall, includes a mix of retail, hospitality, and hospitality spaces, and is set to become a landmark in Melbourne’s retail scene upon completion in mid-2025.
JD Sports joins an expanding list of global retailers flocking to the Melbourne CBD as the city’s retail sector regains momentum.
Colliers’ Tom Larwill said this reflects the strong resurgence in visitor numbers to the city.
“Visitation has been climbing steadily, supported by the return of office workers, tourists, and students. JD Sports’ decision to take this large retail space is a clear indication that Melbourne’s CBD is back on the radar of international retail players,” he added.
Meanwhile, in the hospitality scene, the iconic site once occupied by Izakaya Den, one of Melbourne’s most beloved Japanese restaurants will become Miyazaki Gyu, a high-end restaurant and bar specializing in Wagyu beef.
Agents Fitzroys Franklin Gikas and James Lockwood secured a lease for the basement space at 114 Russell Street.
The lease is for three years with an option for another three years at $165,000 per annum net, marks a record basement rate per sqm for a hospitality venue of this size in the CBD.
Lockwood said the new operators were drawn to the location due to the high-quality kitchen infrastructure left behind by Izakaya Den.
“The space had an established reputation and provided a platform for their vision,” he said. This deal forms part of a wider trend in the CBD, with a number of hospitality operators looking to secure spaces with existing infrastructure, which offer a faster and more cost-effective way to open new venues.
In addition to Miyazaki Gyu, other hospitality concepts are also sprouting up across Melbourne’s laneways and dining hotspots. For example, dynamic new concept Peck’s Road has leased a space at 234 Flinders Lane, marking its second venture into the CBD. The property received over 10 offers during a competitive campaign, underscoring the increasing demand for prime hospitality locations in the heart of Melbourne.
Meanwhile across town, a newly refurbished space at 124 Exhibition Street has been leased to Tori’s Bakery Café.
The recovery of Melbourne’s hospitality sector is expected to gain further momentum as office workers return to the city, boosting foot traffic and creating more opportunities for restaurants, cafes, and bars.
“We’re seeing plenty of interest in CBD properties with hospitality infrastructure, and we anticipate a positive start to 2025 as more businesses bring their employees back into the office,” said Gikas.
