Fashion houses look to secure base-level spaces in Melbourne offices
Commercial landlords may have the opportunity to take advantage of a surge in fashion houses looking to rent spaces at the base of CBD office towers.
The trend, according to Savills Australia’s retail leasing executive Jock Thomson, is seeing retailers looking outside of Melbourne’s traditional fashion district. For instance, 357 Collins Street, 555 Bourke Street and Goldsbrough Lane (below 181 William Street) have seen men and women’s fashion moving in.
He said that these retailers are thinking outside of the square and are keen to be in the base of office buildings where they are already housed with thousands of potential clients.
“It’s really a no-brainer and one that has worked so well for eateries and coffee shops over recent years. Why would it not work for fashion? It’s convenient for the customer and cost-effective for the brand,” Thomson said.
Brands such as Thomas Pink, Herringbone and Cambridge Kit and TM Lewin have already taken up this trend. Thomson said this may be due to retailers’ need to do something about the impact of online shopping.
“One of the key attributes of online shopping is convenience and that has not been lost on these retailers who are also well aware that most shoppers still like to browse the hard copy, to have the touch and feel experience, and they are providing that experience in the most convenient location,” he said.
“Adversity calls for and often provides the most creative solutions and this is what we are seeing in fashion retailing in the Melbourne CBD”.
Meanwhile, state director of retail Michael Di Carlo said that it would be landlords who will be happy with the news, seeing it as a lucrative additional revenue stream.
“With coffee shops, eateries and now fashion houses competing for space we are going to see greater competition for the best spaces which means healthy rental levels,” he said.
He noted that 30 to 300 square metres of space at 199 William Street is coming up in November, and 447 Collins Street, will provide fashion retailing opportunities.
