Cottesloe’s Napoleon Street is the best performing retail strip in Perth, according to new research by Ray White, with vacancy dropping from 6.9 per cent to zero in two years to September 2019, while Subiaco, Leederville and Mt Lawley have had big increases.
Cottesloe’s Napoleon Street is the best performing retail strip in Perth, according to new research by Ray White, with vacancy dropping from 6.9 per cent to zero in two years to September 2019, while Subiaco, Leederville and Mt Lawley have had big increases.
Vacancies on Oxford Street in Leederville have grown from nil in 2017 to 6 per cent this year, while vacancies in Subiaco have more than doubled from 5.9 per cent in 2017 to 14.7 per cent in 2019, and vacancies on Beaufort Street in Mt Lawley have increased from 9 per cent to 16.8 per cent.
The Napoleon strip recorded no vacancies in September across 37 shops surveyed.
Last year, there were only two vacancies recorded on the strip which have now been developed into a café and a clothing store.
While there were no vacancies for this period, the tenancy mix showed some changes – most notably, a 17.9 per cent increase in cafés and restaurants, up 15.9 per cent from last year.
Recreational shops, comprising personal and household goods and beauty services, have also increased from 7 per cent last year to 9.3 per cent in 2019.
Rents are anticipated to remain in the $650-700 per square metre net range.
Ray White Western Australia property advisor Brett Wilkins said retail strips in Perth have been under extreme pressure over the last few years, with high labour costs and online shopping a driving force behind the demise of many retailers.
He said successful retailers should keep a focus on experience and convenience-based retailing.
“A greater emphasis on experience-based retailing has been key, providing greater entertainment, activity and education in store to attract customers,” Mr Wilkins said.
“Consumers have shown greater attraction to convenience-based retailing, which highlights the need for successful retailers to have an easy in and out solution surrounding parking and access.
“Food has been a key success for many centres and retail strips while a move to service-related tenancies ensures strips remain well visited, however, rents will need to remain competitive, particularly for secondary assets to keep strips vibrant.”
Mr Wilkins said another positive note was the reduction in vacancies on Rokeby Road, with the strip showing signs of a recovery.
“Rokeby Road is one of the most visited retail strips and is considered by many to be the ‘super prime’ of retail strips across Perth,” he said.
Vacancy on Rokeby Road is slightly down, from 14.7 per cent to 15.2 per cent recorded last year, representing 15 out of 111 shops surveyed.
“Sentiment in the local market is low, but the redevelopment of the Subiaco Pavilion Market and future development of the football oval and Princess Margaret Hospital will be key to helping rejuvenate this strip to create greater vibrancy.”
Mr Wilkins said Oxford Street in Leederville was seen as the “eat street”, which resulted in an increase in vacancies over the past two years.
Meanwhile, Beaufort Street in Mt Lawley has overtaken Rokeby Road as the strip with the greatest number of vacancies.
“This market still offers a high volume of food-related tenancies, however, the growth in the services sector is likely to be the saving grace for this market,” Mr Wilkins said.
“An increase in occupiers, notably in the medical and beauty sectors, will aid in bringing people back unto the strip for the purchase of a service rather than an actual good.”
