This article is from the Australian Property Journal archive
TOP-tier eateries and restaurants with staff ready to go following COVID lockdowns have been taking advantage of higher vacancy rates and incentives in Sydney’s CBD, and have been busy leasing up retail space.
Greater certainty over income and greater spend per head has seen many of them report better turnover since COVID.
Knight Frank associate director retail leasing Adam Tyler said the high-calibre restaurant groups in Sydney had been best placed to hit the ground running, and were also experiencing greater certainty on income as a result of post-COVID conditions.
“Top-tier restauranteurs had staff ready to go following lockdowns and as a result they were able to hit the go button faster and take advantage of higher vacancy rates and with it, better Tenant incentives,” he said.
“Not only are food and beverage businesses benefiting from potentially better commercial deals, since COVID some operators have also had better income levels.
“They have been able to have greater certainty over income and how many covers they will have every sitting as pre-paying with a credit card to secure a booking has become the norm.
Fixed sittings are also now standard for top-tier restaurants, and restaurateurs are able to flip their tables several times per night with a guaranteed income.
“On top of this, spend per head was up, with many food and beverage tenants reporting they have better turnover since COVID,” Tyler said.
“Many operators have been so successful they are expanding their venues, leasing more space to open more eateries.”
Tyler has leased several venues to operators:
- 4-6 Bligh Street – Liquid & Larder took 369.9 sqm space from Holdmark for its fifth venue in Sydney, and is set to open in the second half of this year.
- 171 Clarence Street – The Bentley Group leased 276 sqm from Terraform Capital, also for its fifth Sydney venue.
- 9 Castlereagh Street, Sydney – The Grounds of Alexandria leased 250 sqm from landlord Charter Hall – also for its fifth venue.
- 92 Pitt Street – Swillhouse Group has leased 452 sqm from City Freeholds for its seventh Sydney site.
- 89 York Street – Pinky Ji has committed to 300 sqm space owned by Fife Capital,. This is the second Sydney restaurant for Jessi Singh, who has already opened restaurants in Melbourne, Adelaide and Byron Bay.
- 66 King Street – The Charles by Etymon Group leased 1,045sq m from a private landlord for one of its four venues.
Leasing rates for the deals range between $800 and $1,500 per sqm, with incentives 20 to 30% of the rent.
Tyler said many of these restauranteurs were very successful in Sydney, with some of the venues taking bookings months in advance.
He said more restauranteurs are looking to either expand on their portfolio or enter the Sydney market for the first time.
The western corridor of the CBD – York, Clarence and Kent Street – has become the go-to food and beverage precinct for Sydney’s best small bars and restaurants, he said.
