News

New Venue For Iconic CBD Hospitality Destination

Posted on 01st September 2021

68 78 Hardware 1

One of the most prominent restaurant buildings in Melbourne’s famous Hardware Lane has been leased, in one of the largest CBD hospitality deals struck this year to date.

Fitzroys Associate Director James Lockwood negotiated the 5+5-year lease of 68-78 Hardware Lane to an experienced hospitality operator. Based on recent rental expectations for a property of this nature it was progressed at a rental in excess of $250,000 per annum.

The two-level, 395sqm building was offered fully-fitted with extensive hospitality and kitchen infrastructure, and has function space on first floor.

Lockwood said the new tenant will also undertake a full refurbishment of premises.

“The new tenant has over 25 years’ experience in the hospitality industry operating various bars, restaurants and function venues across Melbourne, from the CBD to waterfront Docklands sites and retail strips, and has believes Hardware Lane will come back stronger than ever.

“A proven operator with experience in a range of locations, committing to a long-term lease and capital outlay on refurbishments reflects a huge vote of confidence in the CBD.”

Lockwood said enquiry for the property was strong given Hardware Lane’s status as one of Melbourne’s iconic hospitality destinations.

“Melbourne’s city and laneway culture continues to resonate with locals and tourists alike, and people are anticipating authentic Melbourne experiences after being away from the CBD.”

He said the fact that the building was fully-fitted with kitchen infrastructure was also a major factor, continuing a trend seen throughout the CBD and shopping strips since early last year.

“Fully-fitted premises offer operators a more time and cost-effective opportunity to establish or expand their business, particularly in an uncertain time during which they need to be leaner and more agile.”

Fitzroys recently leased 12 Equitable Place to an Asian restaurant with an existing presence in North Melbourne and that is now pushing into the CBD, and 10/26 Equitable Place to a café operator who has run another café in the CBD and looking to venture out on their own.

Fitzroys also leased the entirety of the Kozminsky building at 421 Bourke Street to the Hopetoun Tea Rooms, breathing new life into the historic landmark in the heart of the city.