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Cottesloe the shining light for Perth retail strips

THE fashion hub of Napoleon Street in Cottesloe has continued to buck the trends of retail strips across the country, according to Ray White’s latest Between the Lines* commercial research.

“Year on year this strip has seen retail space take up, resulting in no vacancies recorded at September 2019 across the 37 shop fronts surveyed. A vacancy reduction of 6.81 per cent in 2017 to 0.00 per cent,” said Ray White Commercial (WA) Property Advisor Brett Wilkins.

“Small movements in shops across Napoleon Street has seen some changes to the retail mix, the most notable is the increase in the café and restaurant sector representing 17.87 per cent this period, up from 15.93 per cent last year.

“This high occupancy and limited change in tenancies emphasizes the lack of leasing evidence in this location. Rents are anticipated to remain in the $650-$700psqm net range with investment demand still strong in this tightly-held market.”

Mr Wilkins said another positive note was the reduction in vacancies on Rokeby Road in Subiaco, with the strip showing signs of a recovery.

“Rokeby Road is one of the most visited retail strips and is considered by many to be the ‘super prime’ of retail strips across Perth,” he said.

“Currently, vacancy sits at 14.74 per cent, slightly down from the 15.19 per cent recorded last year. This represents 15 of the 111 shops surveyed in this strip.

“Sentiment in the local market is low, but the redevelopment of the Subiaco Pavilion Market and future development of the football oval and PMH will be key to helping rejuvenate this strip and to create greater vibrancy.”

Mr Wilkins said Oxford Street in Leederville was seen as the resident ‘Eat Street’ and had resulted in some increases in vacancies over the past two years.

“This market boasted full occupancy back in 2017 but since this period three vacancies have come to the market,” he said.

“Two of these assets are food tenancies, with one in the small clothing and soft goods sector, which has reduced its holdings year on year.

“Oxford Street is a highly regarded retail location with food such an integral part of the retail mix, in particular the café and restaurant sector. This category alone represents 43.52 per cent, or over 4,000sq m of stock across the strip.”

Mr Wilkins said Beaufort Street in Mt Lawley had now overtaken Rokeby Road as the strip with the greatest number of empty shops, as vacancy sat at 16.79 per cent in 2019.

“While this has grown over this two-year period to now represent 18 of the 121 shops surveyed, a lot can be attributed to the quality grade of this stock on offer,” he said.

“This market still offers a high volume of food related tenancies, however, the growth in the services sector is likely to be the saving grace for this market.

“An increase in occupiers notably in the medical and beauty sectors will aid in bringing people back into the strip for the purchase of a service rather than an actual good.”

*Ray White Between the Lines – Perth Retail Strips – November 2019.

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