SURFERS FRINGE HARD HIT AS BIG NAMES MOVE ON
RETAILERS have sharpened their focus on three key streets of Surfers Paradise, deserting the fringe areas and potentially changing the face of the touristmagnet suburb.
At the epicentre of the glittering hub of Surfers Paradise – in Cavill Ave, The Esplanade and part of Surfers Paradise Bvd – commercial rents are high and vacancies are low.
But just one street over in Elkhorn Ave the shops have vanished, and landlords can expect rents up to 75 per cent lower than their counterparts a stone’s throw away.
The retail industry squeeze and renovations in major shopping centres have seen shops desert the fringes of Surfers and contract to the high foot traffic areas.
Luxury brands including Hermes, Gucci, Louis Vuitton and Prada left their long-time Elkhorn environs for the new look Pacific Fair, leaving empty shells behind.
Taking the place of the shops are professional services businesses, real estate agents, developers, marketing agencies and others.
Despite the shift, CBRE’s Rudi Scutti said competition for retail space in the threestreet sweet spot was hotter than he’d seen it in years.
Mr Scutti brokered the lease on the new Sunglass Hut store in Cavill Mall, where rents are between $1600/sqm and $4500/sqm and vacancies are at preGFC lows.
For comparison, space on Elkhorn Ave and other fringe streets is lucky to top $600/sqm.
Sunglass Hut snapped up the 39 sqm prime site, which was available for the first time in 20 years, after a leasing campaign which attracted over 100 inquiries and multiple offers.
“The nature of such prime site brought a lot of tenants to the table, Sunglass Hut being a global company offered a far better covenant,” Mr Scutti said.
“In a changing retail environment, the tenant’s ability to meet lease commitments have a strong weight on any client’s decision.”