This article is from the Australian Property Journal archive
RETAILERS have pounced on four stores in the newly Royal Arcade in Melbourne's CBD, according to Kliger Wood Real Estate.
Following the $3 million renovation of the Elizabeth St annexe, Kliger Wood agent Grant McKenzie has negotiated four new leases at Shop 46 to Mane Nocte skin and beauty products; Shop 47 to Downtown Nails Spa; Shop 47 to Metal Couture jeweller and Shop 49 to Mazi fashion retail clothing.
McKenzie said all four new leases are for three or five years at an indicative rental of $2,500 a sqm.
Elsewhere in the main section of Royal Arcade, McKenzie also negotiated new tenancies to Ziggurat homewares at Shop 24 and Habbot ladies fashion footwear at Shop 23.
“This space only became available when an existing retailer elected to reduce its space needs into half of its previous occupancy.
“The rental rates in the main thoroughfare of Royal Arcade are somewhat higher again usually over $3,000 a sqm,” he added.
Meanwhile in another arcade, herb and spice house Gewurzhaus which has two existing retail outlets in Carlton and Hawksburn, has settled on the Block Arcade for its first CBD outlet by leasing Shop 26 with an area of 47.7 sqm.
“Rental rates in premium arcade locations like The Block Arcade are higher again and demand for any available space becoming available is strong, notwithstanding the perceived tough retail climate,” McKenzie said.
“Another factor contributing to the demand for arcade or laneway retail spaces is that several City retail arcade property owners are planning major facility upgrades and are not renewing existing trader leases to facilitate their planned refurbishment by having space vacant during the works period.” McKenzie concluded.
Property Review
