This article is from the Australian Property Journal archive
LUXURY watch and jewellery retailer Monards has leased a showroom on Exhibition St, seeking a presence in the Melbourne CBD’s famed Paris End while avoiding the sky-high rental costs of Collins St.
While the 430 sqm space – at the foot of Salta Property Group’s 63 Exhibition Street – is only a block away from the high-end brand hub of Collins St, the advertised rent of $500 per sqm is just 10% of what some names cough up for prime retail space.
Monards’ own flagship boutique has been housed at the entrance of 101 Collins Street for more than 20 years.
CBRE’s Zelman Ainsworth, who negotiated the lease with colleague Tan Tac, said the deal is the first in what is expected to be the latest retail trend in the Melbourne CBD, with luxury retailers exploring leaseholds beyond the CBD’s traditional luxury retail pockets.
The Paris end, or east end of the CBD, has been centred around Collins St from Dior on the corner of Swanston St to Giorgio Armani and Ermenegildo Zegna at the entrance of Collins St.
Ainsworth said the boundaries were slowly starting to shift, with Chanel having leased an entire building on the corner of Flinders Ln and Russell St, opening the door for other luxury retailers to consider alternative locations to the CBD’s historic luxury retail pocket.
“As luxury retailer demand continues to outpace supply, retailers are looking for alternative locations to house flagship stores, with locations on Russell Street and Exhibition Street being obvious choices,” Ainsworth said.
Gucci and Louis Vuitton, both located on the corner of Collins St and Russell St, have recently refurbished their flagship stores and increased frontage onto Russell St.
