Savills secures Foot Locker in Bourke Street, Melbourne tenancy deal
US based international footwear retailer Foot Locker has secured 600 square metre lease in Melbourne’s CBD.
It is one of the largest open-market Bourke Street Mall deals of the year.
The firm, one of the world’s biggest footwear retailers, with 85 stores Australia-wide, will move from its Swanston Street home.
It will double its floor space on Melbourne’s most sought after CBD strip.
According to Savills Victorian Director Retail Services, Michael Di Carlo, who brokered the deal with Damien Abela, Foot Locker has taken a ten year lease.
The rental of two level tenancy at 327 Bourke Street on the corner of Causeway Lane was not disclosed.
Mr Di Carlo said the deal was one of a number of key tenancy changes completed in the Mall over the last 12 months including Cotton On Mega moving into a new store, Optus expanding, Bardot relocating, Sunglass Hut opening a new flagship store and Michael Hill moving to the high profile corner of Swanston and Bourke streets.
"All of these changes, along with the General Pants relocation, show that large national and international retailers are still seeking high traffic strip locations where they can showcase their brand and generate strong sales.
Melbourne CBD retail and especially the Bourke Street Mall remains Australia’s pre-eminent retail destination and the location of choice,’’ Mr Di Carlo said.
According to Savills Australia’s Q1 retail research (released in April) the CBD core market vacancy rate declined from 3.8 per cent to 2.6 per cent over the previous 12 months.
This marks the fifth consecutive year of declining vacancy despite the addition of several new CBD retail centres.
Associate Director Research, Monica Mondkar said CBD core shop vacancies had fallen 55 per cent - since a post-GFC high recorded a vacancy rate of 6 per cent in March 2011 - and were expected to remain low on the back of increased spending, Melbourne’s nation leading population growth, tourism and the continued influx of high profile global fashion brands.
