Pop-ups fill retails gaps in the CBD
The city's retail vacancy rate rose from 2.4 per cent to 2.5 per cent over the six months to January.
Street fronts recorded a rise in vacancies but vacancies for city shopping centres fell to the lowest level in five years, Knight Frank's retail leasing director, Gary Loo, said. "There was significant demand for pop-ups leading to the Christmas period," he said.
Pop-ups stores encouraged tenants to try out a mainstream retail space for their products in a low-cost, low-risk way, he said. They contributed to the overall vacancy rate for shopping centres falling from 3.1 to 1.6 per cent.
Vacancies fell at the GPO and Australia on Collins, while Melbourne Central has no free space.
Clothing and footwear retailers still dominate, with 29.2 per cent of retail space. Food venues are not far behind with 29.1 per cent, Mr Loo said.
The moratorium on late-night liquor licences has crimped demand from bar operators.
Retail rents have remained stable with prime rents ranging from $2500 to $7000 per square metre and secondary from $800 to $1500 per square metre, he said.
Frequently Asked Questions about this Article…
According to Knight Frank, the city's retail vacancy rate rose slightly from 2.4% to 2.5% over the six months to January.
Knight Frank reported strong demand for pop-up stores over the Christmas period. Pop-ups encouraged tenants to trial mainstream retail space in a low-cost, low-risk way and contributed to shopping centre vacancies falling from 3.1% to 1.6%.
Yes. The report says street fronts recorded a rise in vacancies, while city shopping centre vacancies fell to their lowest level in five years.
Knight Frank noted vacancies fell at the GPO and Australia on Collins, and Melbourne Central was reported to have no free space.
Clothing and footwear retailers make up the largest share at 29.2% of retail space, with food venues close behind at 29.1%, according to Knight Frank's retail leasing director Gary Loo.
Yes. The moratorium on late-night liquor licences has crimped demand from bar operators, the report says.
Retail rents have remained stable. Knight Frank reports prime rents range from $2,500 to $7,000 per square metre and secondary rents from $800 to $1,500 per square metre.
The article highlights that pop-ups let tenants test products in mainstream retail locations at lower cost and risk, which helped boost occupancy in shopping centres. For investors this trend can support stronger short-term leasing activity and lower shopping-centre vacancy rates.
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