The Melbourne metropolitan bulky goods sector has maintained strong growth this year due to low vacancy numbers and solid demand from retailers.

A rents and yields survey conducted by CB Richard Ellis during the September quarter indicated the market remained stable during the period.

“While the arrival of fashion retailers such as Zara and the Gap has received significant media coverage of late, the Bulky Goods sector had also attracted increased interest from international retailers,” CB Richard Ellis Senior Manager Chris Parry said. “We have recently been involved with several successful leasing transactions with international retailers expanding their presence in the Victorian market through Bulky Goods concept stores. “

British retailer Mothercare has opened its first Bulky Goods concept store at the Highpoint Homemaker Center in Maribyrnong. The 1,350 square meter store is the fifth Mothercare store in Australia. In addition, Laura Ashley Furniture & Homewares has decided to expand its presence in the Victorian market by securing a 300 square meter spot in Richmond.

CBRE Research Anaylst Erin Obliubek said of the metropolitan Bulky Goods centers surveyed, the Highpoint Homemaker Center commanded the highest rental rate during both the June and September quarters.

He said: “The lack of new supply and varying quality of existing centers resulted in rental increases of from $230 a square meter to $250 a square meter for Highpoint Homemaker Centers and a decrease in incentives.”
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