Food and beverage operators are showing a greater appetite for retail spaces allowing them to cater for the increased home delivery demand that has been fast-tracked in recent months.
The deal represents Pizza 888 opening its fifth store.
Lockwood said the space will serve Pizza 888’s takeaway concept with minimal seating, demonstrating the move in the hospitality sector from operators with large dining areas towards more agile spaces.
He said more operators are opting for smaller spaces that can offer quick meals or are more conducive to the growing use of delivery services such as UberEats and Deliveroo, particularly during the recent COVID lockdown.
“People want to be served quickly and more operators are looking to meet and best these expectations in recent months. Smaller spaces allow operators to maintain a presence in the market without necessarily having to commit to extensive fit-outs or higher rents for larger spaces.”
Lockwood said enquiry from the food and beverage sector is bouncing back as operators seek opportunities to adapt to the changing environment.
“Competition for spaces has increased, and this deal was negotiated above market rates,” he said.
Pizza 888 has existing sites spread across Melbourne, in Altona, Docklands, Balwyn and Cranbourne.
Talbot said Glenferrie Road, Malvern presented an ideal location for the business’s next site, and had recently attracted numerous hospitality operators.
“Malvern and the surrounding suburbs offer an established and affluent catchment that is one of the most enviable in Melbourne,” he said.
The Glenferrie Road shopping strip has also seen a new Italian restaurant lease 99 Glenferrie Road, and ice creamery ScoopyDoo Gelato open up at 225 Glenferrie Road.
Fitzroys has undertaken 67 leasing deals since the State of Emergency was declared by the Victorian Government in March. Lockwood said leasing campaigns are showing more purposeful activity from retail tenants.