Over the past few years, Beaufort Street has experienced a changing face in retail shops, together with a range of bars, cafes and restaurants creating a vibrant and eclectic mix. The change has attracted a large number of patrons to the strip and with them, an increase in retailer interest.
Adam Musbah, Associate Director at Lease Equity said “Retail sites along Beaufort Street are becoming increasingly difficult to come by. As a result, over the past two to three years, we have seen rental rates increase from an average of $300.00 per m² to recent benchmarks of $800.00 per m² achieved by Lease Equity”.
In spite of this, retail rates along the strip vary substantially. Although it may be regarded as Perth’s premier strip and rental rates have increased, rents in strips like Bayview Terrace, Claremont and Rokeby Road, Subiaco are still nearly double that of Beaufort Street.
In the past year, Lease Equity has negotiated over ten new leasing deals along the strip. “We have seen retailer’s perception of Beaufort Street change from moderate to great interest, to identifying Beaufort Street as a prime location” Mr Musbah said.
Earlier this year, national fast food chain Noodle Box opened their first flagship store in one of Beaufort Street’s prime corner properties. Noodle Box have over 70 stores throughout Australia and when making the decision to enter the WA market, identified Beaufort Street as a strip that was comparable to that of major retail strips in the Eastern States.
Lease Equity recently negotiated a deal with Sports Fever who have stores in two of Perth’s most renowned strips, Napoleon Street, Cottesloe and Rokeby Road, Subiaco. “The demographic of the Mount Lawley area is very similar to that of the Western Suburbs. Housing prices in Mount Lawley, and in neighbouring suburbs Coolbinia and Menora are as high as $2 - $3 million and are consistently above $1.3 million. The catchment has improved and consists of some very affluent suburbs” Mr Musbah added.
Demand has also increased in the area, as a result of recent developments, such as 595 Beaufort Street, B6 and the Clocktower. Beaufort Street has not only experienced a rejuvenation and demand from retailers, but adjoining strips like the Scarborough Beach Road, Mount Hawthorn precinct have evolved over the past twelve months. The major upgrade and transformation of the Mezz Shopping Centre, has formed an integral part of the Scarborough Beach Road High Street and a catalyst for the new precinct.
“The strong WA economy, demand from retailers and an increase in multi dwelling living will continue to support and fuel rental growth in the Mount Lawley precinct” Mr Musbah continued. “The main draw card for the Mount Lawley precinct is its mix of retailers that stem from independent boutique retailers, to multi national chains. Over time we will see both the Inglewood and Mount Lawley precincts link to become one continuous strip”.