Food and beverage operators are snapping up smaller retail spaces that allow them to readily take advantage of the increased demand for takeaway and home delivery.
In some of the latest deals, Tom Fisher of Fitzroys has leased two spaces in the heart of the popular Glenferrie Road, Hawthorn shopping strip.
The Cookie Box leased a 35sqm space within the Lido Cinemas complex at 679 Glenferrie Road in a 3+3-year deal negotiated by Fisher, which will follow its maiden store in Windsor with a super-prime location. The deal was struck at circa $1,300 per sqm.
A short distance away, at 642 Glenferrie Road, Fisher secured 99 Pancakes for a 4+4-year lease at $42,000 per annum net for the fitted 50sqm corner space, from where it will serve desserts and sweets such as pancakes and profiteroles for dine-in and takeaway.
“Deals along Glenferrie Road, Hawthorn demonstrate the enduring role of Melbourne’s shopping strips as a focal point of communities,” Fisher said.
“There is the possibility that people will continue working from home more often in the future. People have been reconnecting with their local communities, and at the centre of those are Melbourne’s shopping strips.”
Smaller retail spaces have been snapped up across Melbourne by food and beverage operators. Fitzroys has secured 72 leases since the State of Emergency was declared, including 45 retail deals. Of those, 48% of these have been to hospitality tenants, and almost all had taken place throughout Melbourne’s famous shopping strips. Coming into 2020, food and beverage operators accounted for 29% of tenants throughout the strips.
Fisher said operators are opting for these types of spaces so they can quickly offer meals and takeaway and delivery services in the COVID environment.
“Smaller and fitted-out spaces allow operators to maintain a presence in the market and establishment new customer bases without necessarily having to commit to extensive fit-outs or higher rents for larger spaces.”