Melbourne CBD leasing activity picks up in postCOVID environment

Melbourne’s CBD has sprung back to life, with retail tenants of all types making commitments to spaces in the city in anticipation of the ongoing return of workers to the office and amid a huge rebound in night-life and weekend activity over spring and summer.

Businesses based in Melbourne’s CBD and suburbs are becoming more active in enquiry and willing to commit to space, heading into 2023.

This report details vacancy rates and tenancy breakdowns in the Melbourne CBD’s major retail strips and precincts just as Fitzroys CBD Leasing team strikes eight new retail leasing deals across the city to a mix of food and beverage, specialty and service tenants.

Fitzroys strikes eight new deals

Headlining the deals is a lease to Mörk, which expanded into the city two years ago – into a 7sqm lift shaft in Equitable Place – and has enjoyed ongoing success, prompting owners Kiril and Josephin to open a second CBD location at 13 Centre Place on a long 5+5-year deal.

Close by, fashion and streetwear retailer Underground Archive, which focuses on the secondary market for preloved designer goods, has chosen Flinders Lane to open its first physical store after being based online, building and trading to a loyal customer base for the past seven years. They’ll open at Shop 4, 237-239 Flinders Lane.

In Howey Place, Union Kiosk has seen fantastic success since it relocated and opened its doors in the laneway six months ago. As the business has grown and flourished, it became evident that a larger space was required, and so it has committed to moving into the larger adjacent property at number 12.

Also in Howey Place, bespoke garment maker Mr. Cuff has built a thriving business after opening up at number 6-8 through the City of Melbourne and Victorian Government’s Shopfront Activation Program, and has now signed a 2.5-year lease at $1,100 per sqm.