One of The Biggest Melbourne Strip Leases of 2023 Among Camberwell Junction Deals

Posted on 10th October 2023

One of the biggest Melbourne shopping strip leases of 2023 is among a suite of long-term deals struck by Fitzroys that show the immense faith operators have in the trade prospects of Camberwell Junction, which is being supported by a spate of developments in the shopping strip precinct.

Fitzroys’ Tom Fisher and Chris James have leased the 430sqm building at 169 Camberwell Road to a group coming over from China that has a number of restaurants and will now be setting up in Australia.

At 10 years and $165,000 per net, the deal is one of the biggest Melbourne strip retail deals struck so far in 2023.

“This property has a long history as a restaurant venue and is ready for its next chapter with a quality operator that has a successful track record,” Fisher said.

“Melbourne remains a global favourite among hospitality operators. Camberwell Junction’s reputation as an excellent place for trade, supported by an enviable established and growing affluent catchment, evidently reaches overseas.”

In another lease to a hospitality operator, 672 Burke Road was leased off-market by Fitzroys on a long 7+7-year term at $110,000 per annum net to healthy Japanese salad purveyors Fishbowl, which is continuing its expansion throughout Melbourne after being established in New South Wales.

On the absolute corner of the Camberwell Junction, Flight Centre business Travel Money has taken 554-556 Burke Road, Camberwell on a secure 5+5-year lease, while just two doors over, phone, tablet and laptop repairs shop MKC Repairs is making its first expansion outside of the CBD, taking a long seven-year lease at number 560.

“Camberwell Junction clearly has the attention of local, national and international tenants alike,” Fisher said.

Speaking about the Travel Money lease, Fisher said, “This is one of Melbourne’s highest-profile retail corners. Camberwell Junction is one of the city’s busiest intersections and a corner location at the Junction is an iconic suburban Melbourne retail location.”

Burke Road, Camberwell and Camberwell Junction saw vacancies fall to a tight 5.4% over the past year, according to Fitzroys’ new Walk the Strip report - less than half of its COVID peak - as service retailers such as Travel Money, MKC Repairs, and Priceline’s recently-opened concept shop all upped their presence. Meanwhile, the proportion of the precinct earmarked for development lifted to 3.5%, in addition to the number of residential and office developments completed in the past few years.

“Burke Road and Camberwell Junction have proven their credentials through the challenges of the past few years, maintaining a quality tenancy mix of local and national traders, supermarkets, cafés and restaurants attracting large volumes of visitors and custom from its large, established residential and commercial catchment,” Fisher said.

James said, “Camberwell Junction stands to benefit from ongoing medium and high-density residential development in the area as well as the inner-east’s growing office market, as flexible working arrangements become more widely accepted and put a focus on highly-accessible inner-suburban locations with quality retail, hospitality and lifestyle amenity.”

Burke Road itself has seen the long-awaited Sofia’s site development approved, which will bring a seven-storey luxury residential apartment with ground floor restaurant, wine bar and retail; Royal Fund’s 699-701 Burke Road project that will bring as many as 53 apartments, and Time & Place’s Victoria Hill project with 26 residences, while the Victoria & Burke project was recently completed and added 17 residences to the north of the strip.

“Burke Road serves one of Melbourne’s most established and affluent catchments, and this further residential and worker population growth is bolstering spending on retail, food and beverage, and services along the strip,” James said.