Renaissance in Melbourne CBD Retail Arcades
Melbourne’s famous retail arcades are roaring back to life as local, national and international businesses look ahead to a busy spring and summer.

Fitzroys’ James Lockwood, Travis Keenan and Franklin Gikas have negotiated four brand-new leasing deals across the famous Royal Arcade and at 271 Collins Street.

Royal Arcade - Melbourne’s first retail arcade and the longest-standing arcade in Australia - will welcome Melbourne contemporary fine jeweller Melanie Katsalidis and Florence-based perfumery Santa Maria Novella.

Set to open in the September quarter, this will be Katsalidis’ flagship store and feature the brand’s unique locally-made collections as well as other coveted design and art objects. Katsalidis signed a 3 5-year lease at $70,000pa and this will be their 2nd city retail space, the first being Pieces of Eight gallery, established in 2005.

“Melanie was seeking a retail space that complemented her brand’s image and that will allow her to further grow a presence in the CBD. The Royal Arcade was considered the perfect location to do so,” Gikas said.

Tracing its roots back to 1221, Santa Maria Novella has formed an internationally recognised name that can be found in households globally. This will be the Italian beauty brand’s first Melbourne flagship, signing a long 5 5-year lease at $85,000pa.

“Santa Maria Novella’s rich history resonates perfectly with the identity of the Royal Arcade as one of Melbourne’s oldest arcades. The brand focuses on establishing stores in a location that they believe align with their story as a global company,” Keenan said.

At 271 Collins Street, Sydney-based Moi Moi Jewellery has committed to a 5 5-year lease over Shop 9C, while Maelle Bridal has taken a 3 3-year lease over Shop 9B.

Linda, the creative force of Maelle Bridal, has been operating as a bridal stylist for many years and has taken the step of establishing her first physical retail store. The privacy of the arcade and intimate nature of the location will provide assurance and establish a personalised experience for brides looking for the right dress for their special day. Meanwhile, this will be Moi Moi Jewellery’s first Melbourne flagship store, and follows on from their store in Sydney’s Queen Victoria Building.

Keenan said they chose this space due to its heritage building profile, while both new tenants favoured this building in particular due to the space being nestled among established tenants such as Peter Sheppard and EST Skin Clinic.

Lockwood said, “There is a renaissance taking place in Melbourne’s CBD retail arcades”.

“It’s telling that CBD arcades have attracted local, interstate and international retailers for their Melbourne flagship stores,” Lockwood said.

“Arcades are a celebrated part of Melbourne CBD’s retail and cultural offering. Retailers committing to these leases show that these quintessential parts of Melbourne CBD life are reawakening.

“Tenants are looking beyond the towards an ongoing rebound in day-to-day trade over spring and summer, to go with the bounce-back we’ve seen in night-time activity and weekend visitation.”

EB Games Finds New Flagship Site as Tenants Move Within the CBD
Also in the city, Australia’s largest video games and pop culture retailer EB Games is moving its Melbourne CBD flagship store.

Fitzroys’ Travis Keenan, Franklin Gikas and James Lockwood negotiated the lease at 48 Elizabeth Street, part of the 271 Collins Street building, in the heart of the Melbourne CBD.

EB Games is relocating from 67 Swanston Street, into the former My Chemist space. The 192sqm space has a large combined 10m frontage to busy Elizabeth Street enjoying passing foot traffic from the ant trail that runs to and from Flinders Street Station.

Keenan said EB Games chose this particular space as it was looking to relocate and optimise its space.

Lockwood said the theme of optimisation within the CBD has extended from tenants with one or few sites to national operators. Fitzroys has just leased 148 Little Collins Street in the CBD to shoe retailer Sole Motive on a 3 3-year deal, who is also moving within the CBD from their Queen Street site to a prized east end location.

Fitzroys has also recently negotiated a deal with Union Kiosk at 10 Howey Place on a 3 5-year lease after outgrowing their current CBD location, and on Little Collins Street, Asian-style desserts hawker Sulwha Desert Bar signed a 5 2-year lease after gaining a following through its operating Little Bourke Street pop-up that ran over 2020 and 2021, while Bent-Oh! Took a Flinders Lane space for its second Melbourne store, committing to a long 5 5-year deal. Its parent company runs a specialty coffee and salad bar in St Collins Lane.

Diabetes Victoria Sells Long-Term Headquarters
Diabetes Victoria has sold its long-term headquarters on the northern fringe of the Melbourne CBD for around $14 million to a buyer associated with the Chemist Warehouse group.

Diabetes Victoria bought the 1,010sqm property on a 711sqm site in 2001 for $2.8 million, and offered it for sale with a short-term lease back ahead of its relocation.