Hardware chain coming to troubled strip

The South Yarra property was listed for lease last March.

Mitre Ten is coming to South Yarra’s Chapel Street.

A franchisee of the Metcash brand has signed a five year lease for a 201 square metre former luggage retailer at #356.

The store is fit out with male and female amenities and a lunch room.

The starting rent is $60,000 ex-GST.

Gray Johnson’s Rory White was the agent.

The incoming business will compete with a Thrifty Link in St Kilda.

It is also five kilometres from the Mitre 10 in Weir St, Glen Iris – the address identified in 2017 as the population centre of Melbourne.

Prior to the bag retailer, 356 Chapel St was occupied by Bank of Cypress which in 2012 became Delphi Bank.

A full-scale Bunnings, at c8,000 sqm, is about 40 times bigger (story continues below).

The starting annual rent for the 201 square metre space is $60,000 ex-incentives.

New chapter for 356 Chapel Street

Chapel St has the highest vacancy rate of any leading Melbourne strip – it is estimated one in every six shops is empty.

Mr White said this is despite the commercial centre services a large residential catchment of several kilometres. No big box retailer, like Bunnings, is within easy reach of #356, he added.

“I think our new tenant has determined there is an opportunity with good demand from this location for household and general hardware lines,” according to the executive.

“Our initial thoughts for this private investor-owned property were for another retail fashion or possibly an office tenancy…so it was pleasing to see a tenant with a new vision”.

The property had been vacant since last March.

Mr White said the hardware store lease provides rental incentives for fit-out and establishment costs.

Rent will rise annually at CPI.

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco