News

International Tenant Takes Up Prime Chapel Street Space

Posted on 16th February 2023

London-based boutique Ivory Thread Bridal is that the latest new tenant to take up space in the heart of Chapel Street, South Yarra as arguably Australia’s most famous shopping strip continues its post-COVID rebound.

Fitzroys’ Lewis Waddell negotiated the three-year lease at $600 per sqm net at 487 Chapel Street on behalf of a local long-term investor.

Waddell said this is Ivory Thread Bridal’s first boutique in Australia after working in London.

“Chapel Street presented a more affordable option compared to High Street, Armadale and the boutique will join multiple likeminded operators in the area,” he said.

Eternal Bridal recently leased 517 Chapel Street in another deal by Waddell, that marked the tenant’s notable move from High Street, Armadale – a reversal of the trend that emerged in the mid-2000s, when some Chapel Street retailers began to make the move to the then-more affordable High Street. Another bridal studio, Rajashree, has just opened at 448 Chapel Street.

According to Fitzroys’ latest Walk The Strip report, Chapel Street, South Yarra’s vacancy rate has nearly halved in just two years, falling from 20.4% in 2020 to sit at 10.7% currently.

“Vacancy between the Jam Factory and Capitol Grand Building in particular has decreased rapidly over the last 12 to 18 months. It’s feeling really vibrant and high-quality operators are looking to this part of South Yarra.”

Waddell said mostly fashion and beauty operators enquired into the primely-located space.

Waddell has also recently negotiated the leases of 505 Chapel Street to fashion retailer Casa Amuk, which is moving from the Prahran part of the strip, and men’s clothing label Calibre at 483 Chapel Street, from where it will run a clearance outlet in addition to its recently leased 543-545 Chapel Street site. He has also just leased 587 Chapel Street to Portobello Jewellers.

“Landlords are meeting the market, and tenants are finding the rent and demographic opportunities on Chapel Street so appealing we’ve got tenants optimising their position within the area as well as actually moving from a different location altogether to get into the strip.”

Other recent fashion entrants include Saba and Gorman’s new flagships at 576-584 Chapel Street, as well as Anna Thomas and shoe retailer Zomp at 524-564 Chapel Street.

These moves followed the openings of Joe Bananas and M.J. Bale, also in deals by Waddell. Other new entrants to the strip include women’s fashion boutiques Lilita Martin, LTRO Studio and Leaterials, and retailer Landes Warehouse optimised its position.