Conquering the city divide

Docklands' southern retail is 'coming of age' because the area is being developed into distinct precincts with strong amenity: a Woolworths supermarket, specialty shops on Merchant Street, and many personal services and food-and-beverage options. About 450,000 sqm of office space (occupied or soon-to-be-completed) between Etihad Stadium and Flinders Street, roughly 30,000 workers in the precinct and 2,500 apartments mean steady local and commuter foot traffic — factors that matter to retail landlords and property investors.

Leasing agents describe a basic north/south split around Etihad Stadium. To the north are New Quay, Waterfront City and the movie studios; to the south are major office and residential projects extending Bourke and Collins streets. Key retail-focused localities for investors include the Victoria Harbour precinct (Merchant Street, NAB, Myer and ANZ headquarters) and the area south of Etihad (retailing at Victoria Point near Southern Cross Station and the Bourke Street concourse).

The southern Docklands hosts major corporate tenants that generate worker demand for retail: NAB (new 60,000 sqm building under construction), Myer, ANZ, National Foods, GTV 9 and Watergate on Bourke Street, and Fairfax, Medibank, VicUrban and AMP/AXA on Collins Street. Large projects like Collins Square include tenants such as the Australian Tax Office, Marsh Australia and Pearson — all contributing to office-worker footfall that supports nearby retail.

According to leasing agents in the article, inquiry is mainly from hospitality and personal services sectors — cafés, restaurants, hairdressers, drycleaners, pharmacies and other convenience or food-and-beverage tenants. Existing operators like In a Rush, Aki Sushi and Senshi have taken multiple sites, reflecting demand from food and hospitality retailers.

There are about 450,000 square metres of occupied and soon-to-be-completed office space between Etihad Stadium and Flinders Street. Leasing agents estimate a typical occupancy ratio would mean more than 30,000 people working in the precinct — a substantial daytime catchment that boosts demand for lunchtime, convenience and service-oriented retail.

Yes. Fitzroys recently leased two shops in the Myer building, which is now fully tenanted, the last shop in Lend Lease’s Gauge building has been leased, and CBD operator The Tuck Shop is close to finalising another deal nearby. These moves, plus multiple sites taken by food operators, point to rising leasing activity and tenant demand.

Large developments bring office tenants and planned retail components. Collins Square’s new buildings (housing tenants such as the Australian Tax Office, Marsh Australia and Pearson) include significant retail elements, while NAB’s 60,000 sqm building under construction links retail to commuter nodes like Southern Cross Station. For retail investors, this means anchored foot traffic and complementary retail demand from both workers and commuters.

Leasing agents point to the areas around Collins and Bourke streets as particularly buoyant, with strong demand from retail and food tenants. Merchant Street and the Victoria Harbour precinct are also highlighted due to specialty shops and proximity to major office headquarters and commuter hubs.