Retailers Take Opportunities Across The Inner North-West

Posted on 28th April 2020

Retail tenants are continuing to seek high-quality and well-located leasing opportunities in Melbourne’s inner north-west, regardless of the COVID-19 conditions.

Fitzroys Senior Manager Ervin Niyaz has secured a string of leasing deals in Moonee Ponds and Pascoe Vale.

At 1 Puckle Street, Moonee Ponds, a bridal showroom and dressmaker has leased 563sqm across the ground and first level in separate deals Niyaz negotiated on behalf of Mary’s Fruit Supply Pty Ltd and another private landlord.

Both spaces were leased for six years plus five-year options, with 3% fixed increases at option. The 120sqm Shop 1 on the ground floor was leased at $40,000 per annum plus outgoings and GST, and 453sqm on Level 1 leased at $50,000 per annum plus outgoings and GST.

Niyaz said the tenant is a local operator who has relocated to a larger and more prominent building for higher level of exposure due to a growing business.

The building is on the high-profile corner Moonee Ponds Junction bus and tram interchange, at the corner the popular Puckle Street shopping strip, Mount Alexander Road and Pascoe Value Road.

“Good opportunities for businesses will continue to attract the attention of strong-performing and innovative traders.”

“Tenants are taking a long-term view of leases, showing confidence in a broader retail recovery over time and the growth prospects of Melbourne’s inner north-west, with Moonee Ponds and the surrounds currently experiencing generational levels of residential and commercial development.

“Demand for a range or retail, from food and beverage to services, will inevitably increase as the projects are undertaken and reach completion in the coming years.”

Also in Moonee Ponds, Niyaz leased the 70sqm Ground Floor Kiosk Cafe within the Australian Taxation Office building at 6-22 Gladstone Street to Agent 22 Pty Ltd on a long-term 12-year deal with 3% fixed annual increases. The tenant is an experienced operator with two other cafés.

Niyaz brokered the deal on behalf of owner Cyberra Investments Pty Ltd, which is currently undertaking a significant refurbishment of the building and re-leasing of more than 6,000sqm of office space. The ATO occupies around 15,000sqm.

Knight Frank was also involved in the marketing.

Niyaz said commercial buildings are increasingly expected to offer hospitality and lifestyle amenities for their workers.

“Quality food and beverage and service retail operators are highly sought after for these spaces, as inner-suburban asset owners look to secure office tenants in an increasingly competitive environment with more Melburnians desiring to live, work and play across the inner city.”

There are more than 1,500 apartments within the Moonee Ponds Activity Centre in various stages of planning and development, while the future $2 billion overhaul of the nearby Moonee Valley Racecourse will include multiple residential and commercial buildings, adding a further 2,000 dwellings.

In the neighbouring suburb of Pascoe Vale, Niyaz leased a highly-exposed 152sqm corner property at 90 Cumberland Road to Bandwagon Store Pty Ltd for their retail sale of packaged liquor and bar concept.

Niyaz said the new tenants are experienced operators in the pub and brewing industry who saw a gap in the market in and around the area and snapped up the high-profile opportunity in the heart of Pascoe Vale’s retail core, with 11 on-site parking spaces and a neighbouring TAB.

The three year lease has a seven year option and was struck at $85,000 plus outgoings and GST, with annual 4% fixed increases and a market review at option.

Niyaz struck the deal on behalf of Piclaw Holdings Pty Ltd.