A Retail Renaissance
After over 260 days of lockdown since March 2020, the retail leasing market is busier than ever. I am pleased to report that Belle Property Commercial has leased more than 30 properties in the past six months.
There has been a mix of retail tenants, ranging from fashion and hospitality to allied health and services, with a large volume of activity focussed within the City of Stonnington. Three shops in Greville Street, Prahran were all leased within six weeks of each other to well-known fashion retailers.
The biggest shift I have seen has been around hospitality, with new food stores and small format supermarkets being set up as well as cafes opening on the ground floor of new mixed-use developments.
Service retail and allied health such as physiotherapists and chiropractors continue to expand. One of the most noticeable departures are banks and newsagents – banks, which once dominated in shopping strips, are closing down due to customers’ shift towards online activity. The same goes for newsagents.
Online retailing will continue to have a large retail market share, but there will always be those consumers who prefer an in-store shopping experience where they can see and try out products before committing to a purchase. In my view, it is important to have both a great presence online and a great physical store.
Stylerunner, a leading multi-brand retailer for women’s sportswear, activewear and sneakers, recently opened in High Street, Armadale. The retailer offers a fabulous shopping experience both online and instore, where their shopfronts are colourful and inviting.
Momentum is certainly picking up in the CBD with international borders reopening, where we will see the return of overseas students, along with the return of office workers.
Over the COVID journey, some retail shops have been repurposed as offices, or for residential and educational use. Landlords and tenants are working more collaboratively, and tenants are now in a stronger position to negotiate with the availability of vacant shops. We are seeing shorter lease terms and higher incentives being requested.
The retail strips are playing a big role in keeping our villages and communities connected. Through the various lockdown periods, customers became very loyal to their local strips and chose to shop locally. Trading associations are working together to promote a mix of retail and amenities; a great example is Cato Square that runs behind Chapel Street, offering gorgeous parkland seating in the middle of bustling Prahran.
I strongly believe that being a good agent is about knowing what is happening in the market and creating and maintaining good relationships with your clients.
I pride myself on my loyal client base and I credit my market knowledge and the strong relationships I have built for my clients’ repeat business that has continued over the years.
Tamara Gross is the director of retail at Belle Property Commercial and can be contacted at tamara.gross@belleproperty.com
Originally published in the Australian Jewish News Property Review Weekly.