Brisbane has strongest growth of retail rents in the country
Brisbane’s retail market could be in the early stages of a revival courtesy of a strengthening food and beverage sector, agents say.
Colliers International research reported by Morgan Stanley showed that retail rents for premium shops in Brisbane had increased by 1.4 per cent over the June quarter, the best result of the four biggest capital cities, while rents for the same properties increased 6.8 per cent year-on-year.
These results were in stark contrast to Sydney, which recorded a 4.3 per cent fall in premium retail rents over the quarter and 3.1 per over the year, while in Melbourne premium retail rents fell 4.2 per cent over the quarter and the year.
This growth in rents had made the Brisbane CBD the third most expensive retail region in Australia, according to the Colliers International Retail First Half 2017 Research and Forecast Report.
The Singe Guys cafe in the ground floor of 201 Charlotte Street. Photo: Supplied
”Driving rents in Brisbane’s CBD is strong population growth along with increased tourism numbers, which is assisting retail trade within the city’s centre,” Colliers International Research Manager Helen Swanson said in the report.
”Recent refurbishments and additions to the retail tenancy mix is also providing a renewed ambience and improved streetscape to Brisbane’s CBD.”
In particular the food and beverage sector was driving this increase in rents across prime and secondary retail properties in the CBD and fringe locations with strong activity being recorded, said Anna Dunworth, CBRE’s senior associate director retail advisory & transaction service.
”There was a period of time when it was all doom and gloom,” she said. But retail rents had stabilised and sentiment had improved.
”All in all, if you were to look at the general market sentiment between now and where we were this time last year, I think it’s certainly more positive.”
Ms Dunworth said Queen Street Mall was also holding its mantle as Brisbane’s premier retail location.
”Because the mall is so tightly held, the rents – which are some of the highest rents in the country – have been able to remain high,” she said.
But other locations such as the CBD’s ”golden triangle” – bordered by Edward, Queen and Eagle streets – were also proving popular. Office workers in the newly refurbished tower 201 Charlotte Street were set to benefit from the growing cafe and restaurant scene springing up around it.
Chesterton International associate director leasing, Ben Sikalas, said the building’s owners Fortius Funds Management had turned what was an under-utilised ground floor area into a desirable retail space, which was part of a developing ”laneway culture”.
”Rather than charging an office rent or a gym rent on the ground, which was all it had previously been, they’ve now got the ability to charge a strong retail rent for it,” he said.
The Single Guys cafe recently opened its second premises on the ground floor of 201 Charlotte Street and is already thinking about expanding its trading hours to make the most of the location’s strong foot traffic.
”It’s really busy as a thoroughfare before and after work, and during lunchtime, and so I think it will work really well,” the Single Guys’ Janey Guo said. ”With the amount of people walking past after work, we are even thinking about trading in evenings and evolving into an aperitivo-wine bar space.”
