One of Melbourne’s most-loved laneways, Centre Place, is springing to life with small businesses – as new data shows Melbourne continues to record the lowest retail vacancy rate in the country.
After reaching a record high of 31% in 2021, the City of Melbourne’s latest Melbourne Economy Snapshot reveals retail vacancy rates in the CBD have halved in the past year – dropping from 13% in April 2023 to a low of 6.5% in April 2024. The broader municipality’s retail vacancy rate is also down to 10.7%, dropping by a third in the past 12 months.
The snapshot also reveals more people are coming into the city on Mondays during peak morning commute times, without a drop in attendance on other weekdays – with Flinders Street Station in February recording its busiest Mondays since 2020.
This uptick in commuter activity coincided with an increase in dining and entertainment spend, which has tripled since 2021 – showing workers are making the most of their time in the city and supporting traders on more days of the week.
Next-door neighbours in Centre Place – famous hot-chocolatier, Mörk and trendy upcycling boutique, Beekeeper Parade – are two of the 15 businesses that have activated empty shopfronts in the past year, thanks to Council’s Small Business Grant program.
They join more than 800 others who opened shopfronts across the city in the past year – creating new jobs and more reasons to visit the city.
Chocolatier, Mörk at Centre Place
Melbourne’s Lord Mayor Sally Capp said: “Across every street, down every laneway and behind every corner, there are businesses waiting to be discovered by visitors – it’s one of the best things about our city.
“Melbourne means business – we’ve once again recorded the lowest retail vacancy rate in the country, showing the city is heaving with activity and support for local retailers.
“We understand there are many precincts and traders finding it more difficult than normal to do business right now – and we’re doing what we can to support them, including offering grants and expanding our Business Concierge team.
“We’ll continue to invest in our unrivalled diverse and unique retail scene – and backing businesses that add to the city’s vibe and show the world why Melbourne is the place to be.”
Since retail vacancy peaked in 2021, Council has been working to fill empty shopfronts. Key initiatives include the $2.6 million Shopfront Activation program in partnership with the Victorian Government, the annual $500,000 Small Business Grants program, and the establishment of Business Concierge – with an extra $1.6 million allocated to expand the service in in the draft Budget 2024–25.
Cbus Property has also announced a collaboration with pioneering Australian hospitality entrepreneur, Chris Lucas, to introduce two new signature dining venues to its $1 billion next-generation mixed-use precinct, 435 Bourke Street, in Melbourne’s CBD.
Chris Lucas has been engaged to partner on two multi-level retail spaces including a new style Chinese and a sophisticated Mediterranean concept, forming a new culinary destination for mid-town Melbourne.
Adrian Pozzo, CEO, Cbus Property; Chris Lucas, Lucas Restaurants; Cian Davis, Director, Bates Smart
Collaborating with Cbus Property, internationally acclaimed project architect, Bates Smart, and head contractor, Multiplex, Lucas will develop dynamic, visually aesthetic and environmentally sustainable restaurants and reimagine the precinct’s public and guest experience.
Chris Lucas said, “Melbourne is my home and city that I have dedicated my working life to and is also one of the world’s great food cities. Developments such as 435 Bourke Street give me a rare creative licence and a blank canvas to see how our restaurants can help transform our city and position it as a city of the future for both hospitality and work.
“It’s invigorating to collaborate with a team of like-minded creatives at Cbus Property, who share my belief that global cities thrive on world-class hospitality venues and exceptional dining experiences, while internationally renowned project architect, Bates Smart, has seamlessly integrated my vision into the building’s architectural expression.
“This project is an important city-shaping project for Melbourne and is set to be a landmark commercial tower and new dining destination for future generations. I’m proud and humbled to be entrusted with significant transformational development for our city. As with 80 Collins Street, 435 Bourke Street will be a cool and delicious integrated commercial and dining precinct with an inherent focus on sustainability. My all-electric restaurants will use some of the most advanced hospitality technology available, such as electric woks, demonstrating how our industry can participate and lead as we transition to a more environmentally sustainable world,” he said.
Adrian Pozzo, Cbus Property’s Chief Executive Officer said, “We are thrilled to welcome Chris Lucas to help shape the vision for 435 Bourke Street and create restaurant offerings that will reinvigorate mid-town Melbourne by applying the signature Lucas atmosphere and experience to define a new mixed-use destination for the CBD”.
“Cbus Property and Chris Lucas have worked collaboratively to design the restaurant fitouts to ensure they are wholistically aligned with 435 Bourke Street’s inherent focus on sustainability,” he said.
Lucas Restaurants has spent the best part of three decades changing the face of Melbourne dining with iconic restaurants, including Australia’s renowned Chin Chin, along with Society, Yakimono, Grill Americano, Kisumé, Baby and Hawker Hall and the much-anticipated Batard in Bourke Street, due to open in late spring 2024.
Currently under construction on the corner of Bourke and Queen streets, 435 Bourke Street is anticipated for completion in late 2026.
Lucas recently announced his first restaurant in the heart of Canberra’s Scotts Crossing precinct, Carlotta, a Mediterranean concept opening later this year.
