Brick and mortar retail has faced several years of struggle with increased competition from e-commerce and COVID-19 affecting consumer retail activity. The COVID-19 pandemic is still leaving a lasting impression on WA and the Australian economy which will take years to return to pre-pandemic conditions.
Prior to the pandemic the retail industry in Perth was facing challenges of retail vacancy due to rent price increases and a lack of quality tenancies. In recent weeks, the retail leasing market appears to be bouncing back through a surge in new property developments in surrounding suburbs such as West Perth, Shenton Park, Leederville and Scarborough truly turning up the volume on a retail revival.
Realmark Commercial’s Retail Sales and Leasing Director, Michael Richardson, appointed to lease Hesperia’s new Electric Lane, an under-used laneway in the heart of Leederville is set to be transformed into a bustling food and entertainment precinct connecting the newly completed ABN Building with the historic Leederville Hotel.
Michael leads a team working on the leasing of the Electric Lane, which will welcome a new café concept, a leading celebrity hairdresser and an omakase Japanese sushi bar and takeaway set to revitalise the Leederville precinct later this year.
“We are slowly seeing retailers open new stores and returning to the suburbs - not just in Leederville - but across the suburban areas throughout Perth. Retailers are beginning to feel a sense of confidence in the market and are excited to be a part of these new developments breathing fresh air into a challenged market.” Mr Richardson said.
Popular Cottesloe bakery, North Street Store, has become synonymous with hot bread, cinnamon scrolls and lines out the door. Hospitality heavyweights and co-owners of North Street Store, Lachlan Bisset and Craig Stewart, are both so confident in Perth’s retail revival that they are set to open their first full-service, alfresco-style space in Hesperia’s new Victoria House development, which Michael also assisted with.
“With new developments breathing new life into suburban areas, the Perth retail leasing landscape is quickly evolving with a shift away from large international retailers to local WA operators.” Mr Richardson states.
“Many commercial tenancies in these developments are being snapped up by local businesses looking to move away from the CBD into more suburban locations. With more people working from home there has been a need for good quality dining and take away options in our suburbs as workers adapt to the new way of working, a mixture of home and in the office.”
Realmark Commercial have been working with the Woolworths Group on the leasing of a new generation Woolworths complex in the heart of Inglewood located on Beaufort Street. The newly constructed retail development consists of a 3,390 square metre Woolworths and four specialty stores set to service residents of Inglewood and the surrounding catchment area. These community focused hubs leverage a big brand neighbour with small specialty retailers; some of which attract their own following.
Deli’s Continental have recently signed their new lease at Woolworths Inglewood and will be moving into a bigger permanent space at the entrance of Woolworths. Best known for their popular continental rolls, the extra space will let Deli’s Continental co-owners Stev Makhlouta and Aldo Putzu to continue with the growth of their business and allow them to slowly introduce more items to their mouth-watering menu.