Living ups shop rents

THE value of Perth’s CBD retail properties have been affected by the boost in inner city living, says Stanton Hillier Parker leasing manager, Conray Passaris.

Mr Passaris said retail leasing opportunities in the CBD had always been rare, particularly on high pedestrian traffic routes such as the Murray Street Mall between Carillon and Piccadilly Arcade and the Hay Street Mall between Plaza and City Arcades.

On average, rents in King Street are between $500 and $800 per square metre per annum net.

In contrast, rents for space in Hay Street and Murray Street Malls are from $1,500 to $2,200 per square metre per annum net and forecast to rise.

Rents for other prime CBD shops cost between $1,000 and $1,600 per square metre per annum net.

Prime CBD yields are between 7 per cent to 9 per cent with an average of 8 per cent.

Mr Passaris said the majority of arcades had experienced a drop in pedestrian traffic of about 6.5 per cent, with City Arcade and Carillon the busiest.

He said Murray Street Mall could take on the mantle of the busiest mall once the David Jones redevelopment was complete.

The Perth City Council is also pushing for a major supermarket development in the CBD.

Woolworths has proposed a development for the vacant site behind Forrest Chase.

If this goes ahead, it will add to the Murray Street Mall’s traffic.