Recently the Glen Huntly Road retail precinct in Elsternwick has emerged as one of the more sought after retail strips in Melbourne, particularly for high quality and brand based retailing.
Retailers not already located on the strip are looking to secure quality locations as a priority when they become available.
In the past Glen Huntly road was viewed as being more old-fashioned and traditional; today however the emergence of these young, fun and dynamic brands within the precinct is helping to create a lot of momentum and good enquiry for well-located shops.
So why is this? It makes sense when you think about it. The suburb of Elsternwick is increasingly shifting to a high demand residential locale with many new mixed use apartment developments newly constructed or in the planning phase. There are fantastic retail offerings and ground floor retail options with brand new tenancies.
The retail strip is on a well patronized tram line and surrounded by high profile neighbouring tenancies. Glen Huntly Road retail offers everything from cafés, restaurants, bakery, supermarket, butcher, services, gym, fashion and more.
A key hot spot to watch is between Orrong Road and Nepean Highway, where we are seeing falling vacancy levels and continued tenant demand. Will’s Batch Ice Cream, a family run Ice Cream business recently secured a corner site at 300 Glen Huntly Road, Elsternwick. From the operators behind Cafe Gaia, you can now find Next of Kin café on Glenhuntly Road offering great breakfast options and new restaurant Gu.E Korean BBQ has quickly become a popular dinner choice for locals. We are continuing to see new and innovative retailers enter the strip and add to their existing store spread. This demand is expected to continue.
Typically tenants are looking to secure initial terms of between 3-5 years with a series of renewal options. They are seeking incentive contributions of anywhere between 10%-15% of the value of the first term total rental. Landlords are generally providing incentive combinations of both rent free periods and or fit-out installations, with the latter incentive strategy offering potential depreciation advantages for the landlords over the duration of the lease.
Rentals on the strip can vary greatly with the averages ranging from between $400 to $650 per square metre per annum. That average rental is of course dependant on the quality of the premises, tenancy size, the location, lease term and level of fit-out being requested.
For more detail on the retail activity in this area you can contact Rick Silberman direct on 0432 831 511.
RICK SILBERMAN
SALES & LEASING