Elizabeth Street evolution on track: Elizabeth Street’s southern precinct has continued its transformation, prompted further by the Metro Rail works along nearby Swanston Street and Melbourne City Council plans for conversion into a pedestrian mall.
Office supply retailer Officeworks, part of ASX-listed Wesfarmers, has renewed its lease over 107 Elizabeth Street, near the busy intersection with Collins Street, on a 10-year deal negotiated by Fitzroys Director, Rick Berry as competition for spaces in the precinct heats up.
Officeworks occupies around 350sqm in 107 Elizabeth Street and a further 500sqm across two levels in the adjacent heritage 343 Little Collins Street building, and will embark on a refurbishment of the store.
The owner of 107 Elizabeth Street is restoring the heritage façade of the building to its former glory and upgrading the 1,600sqm of upper level space to provide high quality boutique office accommodation to meet the growing demand for bespoke office space in the CBD.
“The calibre of tenant and quality of retail and office fit-outs is progressively improving in Elizabeth Street,” Berry said.
“Businesses are moving to ensure they offer the best retail experience, looking to capitalise on the strong pedestrian traffic as competition in the area is enhanced, while the office conversions remain popular with businesses looking for trendy work spaces.”
The pool of prospective retail tenants looking for space along the stretch from Flinders Street station up to Bourke Street has grown, with some business impacted by the $11 billion Metro Train tunnel project along Swanston Street.
Meanwhile, Melbourne City Council is pressing ahead with its $2.2 million plans do pedestrianize the area between Flinders Street and Flinders Lane, having successfully trialled a “pop-up park” over summer. Works will begin in early 2019 and include street furniture, bluestone paving and the introduction of more greenery. There is potential for that area to increase northwards to Bourke Street in future.
Disclosure: The weekly Fitzroys Property Wrap is for information only on transactions in the Melbourne property market. Fitzroys provides this information as a public service. We are not purporting that all sales and leases within this report were transacted by Fitzroys.