The Knight Frank CBD retail survey comprises 1.646 shops within the CBD Core, of which 43 were recorded as vacant resulting in a vacancy rate of 2.61%, up from 2.47% recorded in June 2012. Over the year to June, vacancy within Street Front shops increased from 2.70% to 3.93%, its highest level in five years. The vacancy rate in Arcades rose from 0.67% to 2.00%, while in contrast, vacancy within Shopping Centres fell from 3.11% to 1.08%.
Clothing retailers and food retailers remain prevalent within the Melbourne CBD retail core, with Guzman Y Gomez, Mad Mex and Bonbons Bakery among some of the recent incoming tenants. Menswear retailers in particular became more prominent, underpinned by Bell & Barnett opening three stores over the past six months.
CBD retail sales, greater than $1 million in the 12 months to June 2013 totalled $82.57 million across 16 properties. The transactions achieved yields ranging from 3.5-7.5%, with a median of 5.1%. Supported by the increased levels of transactional activity over the past year, yields are expected to firm slightly as investors continue to be drawn to prime retail investment opportunities.
Source : Knight Frank