Former Izakaya Den Space Set For New Chapter As Hospitality Operators Jump On CBD Revival

The former home of Melbourne city hospitality icon Izakaya Den is set for a new chapter, with its lease to a new venue headlining a raft of deals as hospitality operators continue to re-energise the Melbourne CBD.

Fitzroys’ Franklin Gikas and James Lockwood negotiated the lease of Basement 3, 114 Russell Street, which for 15 years was home to the famous Japanese venue Izakaya Den.

It will become a new high-end Japanese restaurant and bar Miyazaki Gyu, specialising in Wagyu beef, open from 12pm until late, after being leased to an operator who has been in the hospitality business for, synergistically, 15 years.

Their previous venues include renowned Hash Specialty Coffee, modern restaurant Whitehorse Chloe, café Platform 7, and Hot Pot on Lonsdale.

This is their first return to the large-scale restaurant scene after a hiatus during COVID, during which they focused on supplying meat and seafood to restaurants.

“The new operator advised they were drawn to the space due to the fact it had been an established restaurant with a great reputation in Izakaya Den, and had the kitchen equipment and infrastructure in place to provide a platform for their vision,” Lockwood said.

The fully fitted space was lease for three years with a three-year option at $165,000 per annum net, representing a record basement per sqm rate for a CBD hospitality premises of this size.

Gikas and Lockwood negotiated the deal on behalf of the space’s owners, who are overseas investors.

Hospitality driving recovery

The former Izakaya Den space headlines a number of new leases to hospitality operators in the CBD.

“We’re still seeing plenty of interest for properties with hospitality infrastructure in place, which provide and time- and cost-effective avenue for operators to set up in new locations,” Gikas said.

“Enquiry and dealmaking have really picked up in the lead-in to Christmas”.

“We’re expecting a positive start to 2025 as we see more mandates from companies for their workers to return to the office, which will increase patronage in the CBD and support hospitality operators and retailers.”

Among the other leases, dynamic new concept Peck’s Road will enter the CBD in a prominent laneway location at Shop 3, 234 Flinders Lane, following a competitive leasing campaign that generated more than 10 offers.

“The depth of enquiry and quality in the campaign demonstrated the strong demand for laneway spaces close to the entrance of the new Town Hall Metro Tunnel station,” Gikas said.

Peck’s Road takes its name from the street where brothers and founders AJ, Arbi, and Albin Lawang grew up. This upcoming venue marks their second venture as they bring their distinctive offering to the heart of the CBD.