Shopping strips evolve to service locals

There is life after death for big name shopping strips in the form of well balanced food, retail and services aimed at locals, according to leading real estate agency Gunning.

Gunning Principal Malcolm Gunning said Melbourne’s Chapel Street, Prahran and Bridge Road, Richmond are going through a slump previously seen in Sydney’s Oxford Street, Paddington and Brisbane’s James Street New Farm.

“The more established boutique brands have relocated into the Melbourne CBD just as they did in Sydney with the redevelopment of the CBD and opening of Bondi Junction.

“What we are seeing now is that Oxford Street, Paddington has reinvented itself.  Rents have come down because of high and prolonged vacancy rates, attracting a new breed of businesses, which has ultimately enabled ‘life after death’.

“Paddington has evolved into a service, restaurant, and provedore area with young fashion brands entering the scene.

“The pubs are undergoing a transformation with Justin Hemmes and his group entering the area, the Paddington Inn, Bellevue in Hargrave Street and The Royal at Five Ways have been renovated. Other venues, best described as gastropubs, are moving towards a focus on food.

“There are also places like Saint Peter, a high end sea food restaurant, which previously would not have been there under the high rents.

“A clustering of fashion brands and interesting food has been driven by the community, not weekend tourism. Shop tops are being split from the retail area and are now in high demand as fashionable flats,” Mr Gunning said.

“Melbourne will experience the same thing. Chapel Street and Bridge Road, tend to be a tourist destination. As the rents go down the area will evolve too and locals will need to be serviced.

“James Street, Brisbane which is between Fortitude Valley, Teneriffe and New Farm reinvented itself from its industrial business into an area which services the needs of a vibrant local community. It has established brands like Sass & Bide, Camilla, Nudi Jeans well as upcoming designers and high quality food options such as Jocelyn’s Provisions,” Mr Gunning said.