CLAREMONT’S Bay View Terrace remains at the vanguard of prime retail shopping strips in Perth, outside of the CBD, and is the only Western Australian location to make it into the top 15 strips in Australia, according to a study undertaken by CB Richard El
Claremont's Bay View Terrace remains at the vanguard of prime retail shopping strips in Perth, outside of the CBD, and is the only Western Australian location to make it into the top 15 strips in Australia, according to a study undertaken by CB Richard Ellis
Bay View Terrace ranked equal 15th in the study, with an average rent of $900 per square metre, a 16 per cent increase on the figure recorded 12 months ago.
Retail space in Bay View Terrace is extremely tightly held, and the increase in rents has been achieved on the back of the strip being fully leased over the past 12-month period
Subiaco’s Rokeby Road is the second most expensive non-CBD retail strip in Perth, with minimal vacancies were recorded.
Rents averaged $650/sq m, which is an increase of 4 per cent from 12 months ago.
CBRE is forecasting Western Australia to have the strongest rate of retail turnover for the next two years, indicating that retail in general, including prime strips, should undergo stronger growth than most other states in Australia.
CBRE research analyst Michael Olsen said the past six months had been very strong in Perth and that there were no signs of the market slowing.
“The prime retail strips have performed very well in Perth, particularly Bay View Terrace, with a 16 per cent increase in rent within 12 months,” Mr Olsen told WA Business News.
Although suburban retail strips were performing well, retail rents in the CBD were still well ahead, he said, with the average rent for a prime location within either Perth mall around $2,300/sq m.
“We are doing deals of up to $3,500 a square metre for prime locations,” Mr Olsen said.
The most expensive CBD retail locations are in the Hay and Murray Street malls, the areas with the highest pedestrian traffic.
And with the Perth’s new CBD train stations, the convention centre, and relatively exclusive Sunday trading, the future for CBD retailers looks bright.
In terms of the rest of the nation, Cavill Avenue in Surfers Paradise has pushed out Sydney’s Oxford Street as Australia’s prime non-CBD retail strip, with an average rent of $2,185/sq m.
CBRE said a fall in demand following the opening of Westfield Bondi Junction caused a 12 per cent drop in rent on Oxford Street, which allowed Cavill Ave to push ahead as the leader in retail strips.
Queensland and New South Wales dominate the list of prime retail strips, between them sharing the top nine spots, and 10 out of the 15 top spots.
The Gold Coast had three of the top 10 retail strips in the country, with CBRE attributing Queensland’s strength to strong population growth, an increase in international tourist arrivals, increasing employment and strong retail trade, all of which have put pressure on rents.
Victoria makes its first showing at number 10 with Chapel Street, and holds four of the top 15 places.