Residential and commercial development continues to underpin the revitalisation of Chapel Street, South Yarra, as traders across the retail spectrum look to move into the famous shopping strip.
In the latest deal, a fashion retailer has leased the single-fronted building of 107sqm at 517 Chapel Street. Fitzroys agents James Lockwood and Lewis Waddell negotiated the deal at $570 per sqm net on behalf of a private landlord.
Waddell said more than 45 enquiries were received for the property, largely from fashion and service retailers.
“The new tenant was keen to secure a presence in one of Australia’s most famous shopping and lifestyle precincts,” Waddell said.
“The property is directly opposite the Jam Factory, which is about to undergo a $1.25 billion redevelopment that will bring 50,000sqm of commercial space to the area, as well as new retail and hospitality space.
“This will bring a huge increase to pedestrian traffic and demand for retail, services, and food and beverage through Chapel Street.”
Waddell said the property is close to the famous intersection of Chapel Street and Toorak Road, the northern gateway to the shopping precinct for shoppers and diners from Forest Hill and arriving from busy South Yarra station or via tram.
Lockwood said commercial and residential development in the area is underpinning a revitalisation of Chapel Street.
“As well as the high-density Forest Hill precinct and Jam Factory redevelopment, the soon-to-be-completed Capitol Grand and W Hotel and new office projects at 627 Chapel Street and Chapel Plaza at 402 Chapel Street will enhance the immediate catchment and add a new vibrancy to the area throughout all hours,” Lockwood said.
According to Fitzroys’ newly released Walk the Strip, Chapel Street, South Yarra vacancies came down from 18.1% to 15.6% throughout 2018/19.
Fitzroys has recently negotiated several leases in the prime section of Chapel Street. Hospitality ventures will open at 585 Chapel Street and 589 Chapel Street, with Jumi’s Café leasing 589 Chapel St, and a reputable Chinese hospitality taking number 585.
In other deals negotiated by Fitzroys, to children’s toys and clothing retailer, Things Adorable leased 539 Chapel Street for their Melbourne flagship store, and Melbourne Laser Clinic signed a long 10-year leased 552 Chapel Street.
“These deals demonstrate the confidence traders have in Chapel Street’s growth prospects. Fashion and clothing retailers, hospitality operators and service retailers alike all have taken note of the opportunities, showing a range of operators want to have a presence in this iconic shopping strip,” Waddell said.