Retailers flock to Melbournes latest showroom development
Retailers flock to Melbourne's latest showroom development
| 10 October 2016
A flurry of leading brands have converged on Melbourne’s newest large format retail development, the Bell Street Showrooms, within the evolving suburb of Preston.
The recently completed large format retail development was opened in August, with leases in place to prominent national large format retailers including Adairs, Petbarn, Baby Bunting, Kitchen Warehouse and Amart Sports. Both Baby Bunting and Amart Sports opened on their doors on August 20, whilst Petbarn have commenced fit out and Adairs are expected to open in October.
Chris Parry and Ryan Arrowsmith of CBRE’s Large Format Retail team undertook the leasing of the Bell Street Showrooms on behalf of local group NPD Property Group. The development comprises 7,000sqm of large format retail floor space, over 260 car spaces and modern facilities for the retailers.
Mr Parry said the confidence from leading national brands to pre-commit to a development such as the Bell Street Showrooms demonstrates the current strength of the Victorian large format retail sector.
“The commitment from national brands to the development further represents a shift in the Preston large format retail market, which has traditionally been focused on Chifley Drive and Murray Road around the two homemaker centres.”
“Retailers are now more willing to relocate from the traditional precinct to Bell Street, with recent examples including JB Hi-Fi, The Outdoor Furniture Specialist, Super Amart Furniture, Beacon Lighting and Lombards. These brands have positioned themselves on Bell Street due to the extremely low vacancy in the market, which is prompting retailers to look at alternate locations for strategic expansion opportunities,” said Mr Parry.
“The ongoing growth of the large format market is further represented in the strong annual reports from major retailers, with Baby Bunting, Petbarn and Adairs highlighting positive sales growth of 12.5%, 4.4% and 11.7% respectively,” added Mr Arrowsmith.
Aside from the Bell Street Showroom project, NPD Property Group has contributed several developments in the municipality and across greater Victoria, including other large format retail developments and industrial properties.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.