Colliers International helps McIntosh, Lee Ho Fook expand CBD presence with new restaurants
Well known hospitality operator David Mackintosh is set to open a new laneway Italian restaurant at 26 Liverpool Street.
Mr Mackintosh has signed up to lease a 145sqm restaurant space on a 10 + 10 year lease, at $120,000 per annum with 4% annual increases.
Colliers International retail leasing specialists Ben Tremellen and Cam Taranto, who negotiated the deal, said this kind of space was highly sought after in the Melbourne CBD.
“As vacancy levels in Melbourne CBD continue to decline, we are seeing more aggressive long term deals being struck which is providing stronger security for Melbourne CBD landlords,” Mr Tremellen said.
The new restaurant is scheduled to open in April, trading seven days a week from 12pm until late.
Mr Mackintosh said the new venue, to be called SPQR, would fill a void in this part of the city.
“There's some great pizza available in the CBD, but not in this little pocket of the city,” he said. “The laneway itself is buzzy and vibrant, lots of people live, work and play in the area and from time to time they'll want a great pizza.
“The restaurant will be called SPQR, in honour of Rome and the great pizza and charm that city offers in equal measure. Wood fired pizza, a couple of pasta dishes and some very good, very fresh and very tasty salads. We'll be offering slices of pizza to stand and eat with a can of cold beer or to takeaway in our front bar, too. A takeaway slice of pizza is $5. Whole pizza and pasta will range from $16 to about $22 and salads in will be priced in the low teens."
In a continuation of the trend towards long term leases being sought by quality operators, Mr Tremellen and Mr Taranto have faciliated another 10-year, high profile restaurant lease in the CBD.
Lee Ho Fook will open its second CBD location after the success of its flagship restaurant site in Melbourne’s famous Duckboard Place, which sits alongside operators such as Chin Chin, Pastuso Tonka and Coda.
Lee Ho Fook will bring an express concept to the western core of the Melbourne CBD and sit within close proximity to Rialto operators including Shannon Bennett’s Vue de Monde and Guy Grossi’s The Merchant. The lease was negotiated on a 10 year term with no options, at an annual rental of $95,000 for 106 square meters with 4% annual increases.
Colliers International has seen demand at the western end of the CBD increase rapidly in recent times.
“There is strong demand from well-established and popular chefs seeking restaurant spaces within the western core of the Melbourne CBD,” Mr Taranto said. “This is the result of the area’s strong year-on-year growth and ongoing activation through commercial and residential development."
The rent achieved represents a 30% increase on the previous rental figure for the same property, just 24 months prior.