News

Laneway Leases Show CBD Confidence

Posted on 19th October 2020

Equitable 29

Hospitality operators anticipating the return of hustle and bustle to the Melbourne CBD have committed to long-term leases within popular laneway Equitable Place during the Stage 4 lockdown period.

Fitzroys Associate Director, James Lockwood negotiated the deals at 12 Equitable Place and 10/26 Equitable Place.

Both were struck on secure 5+5-year terms.

“These leases demonstrate the faith operators have in the future of Melbourne’s CBD, and the significant role its iconic laneways will continue play in city life,” Lockwood said.

Lockwood said the deals continued the trend of properties with existing kitchen infrastructure being particularly attractive to hospitality tenants, which has been consistent throughout the COVID period.

At 12 Equitable Place, an Asian restaurant leased the 110sqm space at $95,000 per annum. The tenant has an existing restaurant in North Melbourne and are now pushing into the CBD. Lockwood said it is noteworthy the business has made its first expansion move during the COVID-19 period.

The 45sqm space at 10/26 Equitable Place was leased to a café at $45,000 per annum.

Lockwood said the the operator has run another café previously in the CBD with another team and now looking to venture out onto his own.

“Both properties were leased to tenants with previous venues, and an understanding of the unique opportunities presented to operators in having a CBD laneway location,” Lockwood said.

“Fitted-out spaces allow operators to readily establish and expand their presence in the market, without having to commit to comprehensive fit-outs.”

Laneway leases recently secured in the CBD have included Fitzroys’ five-year lease of Shop 3, 234 Flinders Lane to FR International, part of FRONTROW Enterprise Philippines, Inc. The 39sqm space within the historic Manchester House fronts Manchester Lane.

Across Flinders Lane, Freechoice Tobacconist has leased a 38sq space at Bible House, on the corner of Scott Alley.