This article is from the Australian Property Journal archive
AN unused lift shaft of only 7 sqm at the back of Equitable Place in Melbourne’s CBD has been leased to an artisan hot chocolate company, as hospitality operators keenly anticipate the return of office workers.
The space at Equitable Place, at the rear of 107 Elizabeth St has been leased to Mörk Chocolate Brew House in a deal negotiated by Fitzroys associate director James Lockwood. The 3+3+3+3-year deal was struck at $17,000 per annum gross.
Lockwood said the deal was the result of advice from Fitzroys to the property’s owners to cut out an opening window onto Equitable Place from the unused lift shaft at the back of the building.
“This was basically a value-add play to the property by adding more income,” he said. “Hospitality operators have witnessed heightened demand for takeaway services throughout the CBD and across Melbourne during the COVID period. This extends from restaurant meals, casual lunches, through to coffee and liquor.
“As a result, demand has grown for smaller spaces with an emphases on takeaway services. In this case, some creativity was required to bring that opportunity to life,” he added.
Lockwood said the tenant was not alone in looking for hole-in-the-wall opportunities.
“We actually had five offers on the property, highlighting the amount of tenants looking to secure a space like this. It’s likely there will be more types of these deals going forward,”
The deal is the third lease to a hospitality operator in several weeks in the popular laneway. Lockwood recently leased 12 Equitable Place to an Asian restaurant, and 10/26 Equitable Place to a café.
“Hospitality operators have been keenly anticipating the return of hustle and bustle to the CBD. Enquiry for suitable spaces has been growing steadily as Melbourne moved closer to reopening,” Lockwood said.
