This article is from the Australian Property Journal archive
THE bubble tea phenomenon driven by the increasing number of international students in Melbourne has seen more shops open across the city.
The Alley LuJiaoXiang is opening its second CBD outlet at 103 Elizabeth St. Fitzroys Associate Alex Shum negotiated the five-year lease with a five-year option at $200,000 per annum.
The rental rate reflected $2,667 per sqm for the 75sqm space.
“The bubble tea phenomenon has been driven by the increasing number of international students in Melbourne, which has boosted pedestrian traffic as well as the immediate population across a string of new student accommodation and high-density residential developments,” Shum said.
“Demand from Asia-based and Asian cuisine food and beverage operators is currently reshaping the retail landscape across the north of Melbourne’s CBD, and we are seeing this spill over across the rest of the city.
“That demand is translating to an uplift of rents in new CBD retail precincts, and a
generational shift in tenancy mix,” he added.
The Alley LuJiaoXiang will be moving into the space formerly occupied by Subway, marking another step in the retail refocus occurring along Elizabeth Street.
Shum recently leased the 50sqm space at 59 Elizabeth Street, closer still to Flinders Street Station, to international chain Gotcha Tea at $165,000 per annum net.
In another off-market deal struck this year, Shum leased the 73sqm space at 299 Elizabeth Street to international bubble tea brand Prime’s Hai, on a five-year deal with a five-year option, at a record rate for the area of $3,150 per sqm, while Shum and Fitzroys colleague Terence Yeh also recently leased the 200sqm double-fronted building at 423-425 Elizabeth Street to a dessert house chain Hui Lau Shan from Hong Kong, at a precinct record $400,000 per annum net on a 10-year lease.
The leasing campaign was the first time in more than four decades the property had been available, having been the long-term home of Spot On Motorcycles, which moved to North Melbourne.
Shum has just negotiated a five-year deal with a five-year option for the 50sqm space at 339 Swanston Street to an Asia-based food and beverage operator at $300,000 per annum net, at a record rate for the precinct of $6,000 per sqm. The operator will take the place of Student Flights.
