Latest three leases leave Church Street strip completely occupied

Three tenants have signed new long term leases totalling more than $1 million in rents on nearly 2000 square metres of showroom space in Church Street, Richmond.

The deals, which have exhausted vacancy on the strip, were struck at undisclosed rents and include furniture stores, Plush and BoConcept, and rugs dealer, Jenny Jones.

Teska Carson’s Jack Kelliher, who brokered the deals with Michael Taylor, Michael Ludski and Fergus Evans, said demand was always strong on Church Street.

"This is a market which seemingly operates in a virtual economic vacuum unaffected it would seem by the headwinds impacting the retail market generally. That is not to say that these business are necessarily making as handsome a profit as they might have done in better times but that they are acutely aware of the value of location in an extremely competitive market,’’ Mr Kelliher said.

Mr Kelliher said the fact that the three quality tenants agreed to strong per square metre rents for the strip, and at incentives well under the 15 per cent average, underlined the strength of demand and the lack of stock. Average rents on the strip are generally over $550 a square metre.

``Church Street is always strong in the showroom market, in fact it is arguably Melbourne’s best inner-city showroom strip and that is exemplified by the fact that there is absolutely nothing available at the moment and plenty of enquiry for any opportunity that comes to market,’’ Mr Kelliher said.

The leases include:

1. Plush - 658 Church Street (pictured in title) - 902 square metres
2. Jenny Jones - 620 Church Street (pictured below) - 560 square metres
3. BoConcept - 527-531 Church Street - 472 square metres

Mr Taylor said the availability of parking, wide street frontages, and exposure to a very popular furniture precinct had been significant considerations for all tenants.