This article is from the Australian Property Journal archive
RETAILERS are still on the prowl for space across the Melbourne CBD and suburban shopping centres.
In total, Savills has negotiated 20 new retail leases across the CBD and suburban centres before Christmas including seven CBD deals in the past month.
Savills’ retail leasing directors Michael Di Carlo and Jeremy Marmur said smaller retailers are seeking prime CBD locations whilst as well as big box fresh food retailers are on the lookout in the suburbs.
“It is a measure of the confidence that retailers have in the state and national economies and state and local governments in planning and promotional activities, but it’s also a measure of what we would expect at this time of year as business in general puts into place its preparations for the new year.
“What has been particularly pleasing, in the face of the continuing gloom on the European and US debt crises, is the solid level of enquiry for retail sites in general including from some larger national retailers,” DiCarlo said.
Marmur said the negative sentiment arising from the debt crises and the new competition from internet retailers should be balanced to a degree by the latest interest rate cut – if passed on – and the potential for further cuts, as well as the rise in consumer spending in the September quarter.
Di Carlo said he hoped to announce details of several new retail deals over the next few weeks or early in the new year following fashion retailer, Hoss’s agreement to terms on a 32 sqm shop at 265 Little Collins St.
“We are surprised at the level of enquiry given the quite negative forecasts for Europe and the US, but like any business, to be successful, you have to plan and proceed in a positive manner,” he concluded.
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