Sensational-Adelaide.com

Vacancies at Rundle Mall continue to fall as international retailers circle for space
http://www.adelaidenow.com.au/business/ ... 15de53a125

VACANCIES on Adelaide’s premier shopping strip fell further last quarter on the back of two bumper lease deals.

Telstra will establish a new flagship business hub at 49 Rundle Mall after signing a 10-year lease at the 338sq m site, while Michael Hill has relocated to 102sq m at 74 Rundle Mall.

Polites Real Estate director Marcus Polites brokered the deals, with Telstra agreeing to pay more than $3200 per sq m, while Michael Hill signed up at approximately $5700 per sq m.

“The Telstra deal is possibly Rundle Mall’s biggest total leasing deal ever, while Michael Hill is possibly Rundle Mall’s biggest leasing deal ever at price per sq m,” Mr Polites said. “With such high demand it is not often that space becomes available for lease in these particular areas and locations on Rundle Mall.”

“When the brands and retailers start to cluster, it really brings momentum to the area, and I am noticing great interest levels by international labels and brands wanting to secure space on the Mall.”

According to figures from Colliers International, the vacancy rate at Rundle Mall fell to 2.1 per cent in September, down from 2.8 per cent in June and 4.2 per cent a year ago. Rundle St has also tightened, falling from 3 per cent to 2 per cent in the past 12 months.

Colliers director of retail leasing Ben Laycock said suburban high streets were currently experiencing mixed fortunes, with Prospect Rd and The Parade tightening in the past year, while King William Rd and Jetty Rd have both reported increases in the number of vacant shopfronts.

“The categories which we are seeing good demand for are clothing and cafe restaurants, which have really driven tenant demand. “We have seen a lot of tenant movement in Rundle Mall and although there is interest from international brands, the challenge is finding the right tenancy for them.”

“Many internationals would like large street frontage and large floor plates – there are only a few owners which are able to accommodate this.”

“Prospect Rd has seen a resurgence with the council investing in a better streetscape, which has seen vacancy fall and more refurbishments of current space.”

CBRE senior negotiator Julie Thomas said the west end of Adelaide was benefitting from major infrastructure projects in the precinct.

“As expected, there has been a noticeable increase in enquiry from food and beverage tenants in the west end of Adelaide, resulting from the opening of the new Royal Adelaide Hospital and medical university schools, together with the tourism growth expected from the Adelaide Riverbank redevelopment,” she said.

“We have secured two food and beverage tenants for the new Holiday Inn Express development on Hindley St and received strong enquiry for Riverbank opportunities related to the Adelaide Festival Centre redevelopment.”

how good is he wrote: ↑

Tue Oct 31, 2017 11:40 am

This should put the cat amongst the pigeons..I have been told that a major chain are negotiating for most of the ground floor Citi-centre space...with 3 street frontages plus rear docking bay on-site etc. The old shops/food court at back etc would all go...once confirmed I will advise... anyone want to guess who?

how good is he wrote: ↑

Tue Oct 31, 2017 11:40 am

This should put the cat amongst the pigeons..I have been told that a major chain are negotiating for most of the ground floor Citi-centre space...with 3 street frontages plus rear docking bay on-site etc. The old shops/food court at back etc would all go...once confirmed I will advise... anyone want to guess who?

Ben wrote: ↑

Tue Oct 31, 2017 12:56 pm

how good is he wrote: ↑

Tue Oct 31, 2017 11:40 am

This should put the cat amongst the pigeons..I have been told that a major chain are negotiating for most of the ground floor Citi-centre space...with 3 street frontages plus rear docking bay on-site etc. The old shops/food court at back etc would all go...once confirmed I will advise... anyone want to guess who?

The space would suit a Debenhams. First Aussie store opened a few weeks back in Melbourne. I couldn't see uniqulo doing well in Adelaide.

i see this as unlikely though as Westpac, McDonalds and Nike all just signed 10 years leases last year.

how good is he wrote: ↑

Wed Nov 01, 2017 9:26 am

Ok good try but what would you say if it was going to be a supermarket......any guesses?

Mpol03 wrote: ↑

Wed Nov 01, 2017 10:37 am

FML this city never gets it right. It's frustrating being an Adelaidian sometimes.