Still space left in Harvey Norman-IKEA's new Springvale homemaker centre
As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.
There is still one tenancy space available in Harvey Norman’s landmark Springvale Homemaker Centre in Victoria. In December CBRE updated the available leasing opportunities indicating there was still showroom floor area with 1,420 square metres available.
The first stage of the centre, involving the largest IKEA store in the Southern Hemisphere, opened in September, attracting more than 80,000 people in the first four days of trading.
In the first five days the Springvale Facebook page has been live it’s had more than 1000 “likes”.
It is located on the corner of the Princes Highway and Westall Road in Melbourne’s outer southeast.
The remainder of the 72,000-square-metre complex opened in October, providing space for more than 25 retail brands, including Harvey Norman and Domayne.
The double-storey complex is a joint venture between Harvey Norman and IKEA. Harvey Norman bought its eight-hectare property, formerly used as a Telstra supply branch, when its fended off fierce competition from developers to pay $14.6 million in 2004, which was $4.6 million more than vendor Folkestone paid for it six months earlier.
Harvey Norman occupies a 10,000 square-metre store, and IKEA is trading from a 36,000-square-metre space.
CBRE bulky goods senior manager Chris Parry says the development introduces new brands and concepts to the Melbourne bulky goods market, including Curtain Wonderland, Harvey Norman Big Buys and Regal Sleep Solutions.
It will also provide an opportunity for expanding retailers including HS Home – the new Harris Scarfe concept – which is being rolled out across Australia.
JB HiFi, Nick Scali, Snooze, Early Settler, Outdoor Furniture Specialists, Howards Storage World, Adairs, Babyco, Plush, Anaconda, House and Berkowitz are among the tenants.
Parry says the rents range significantly, as CBRE has leased space as large as 2,500 square metres within the centre.
“An indicative range is $250 per square metre net to $460 per square metre net,” he says.
“We are currently marketing the last remaining showroom, which is 1,450 square metres with an asking rent of $330 per square metre,” Parry says.
He says the centre's anchor tenants have attracted smaller retailers.
“The strength of the anchor retailers and the centre’s location have been two of the drawcards for tenants, with the complex offering easy access to in excess of 1.8 million people within 30 minutes’ drive time,” Parry says.
“The pulling power of IKEA has been another attraction for tenants, with over 45,000 customers on average visiting an IKEA store each week.
“This equates to over 2.34 million customers a year and when combined with the customer base of the centre’s other tenants in Stage 2, will provide Springvale with a visitation rate unrivalled in Australia.”
