Growing appetite for luxury menswear prompts strong demand for space: Colliers International
A spike in demand for luxury menswear will see a new player emerge in the Melbourne CBD retail market in coming months.
Masons will be the latest men’s luxury multi-brand store to hit the market after signing a lease for 430sqm of space in the historic 167 Flinders Lane, on the doorstep of Melbourne’s famous Hosier Lane.
The 10-year deal was negotiated by Colliers International’s retail leasing specialist Cam Taranto. Colliers International was unable to disclose the commercial details but advised rents in the precinct were achieving around $1200-1400/sqm.
Mr Taranto said Masons would follow in the footsteps of Chanel and Bang & Olufsen in being one of the first luxury sellers to set up shop on Flinders Lane.
“Off the back of the successful trading of Harrolds at 101 Collins Street over the past five to 10 years, Masons will meet growing demand for luxury menswear from a desirable Melbourne location,” Mr Taranto said.
“Australians are more luxury fashion-focused than ever and the appetite for high end menswear is spiralling upwards alongside this broader demand.
“International consumers used to account for around 70% of luxury retail sales within Australia, however, over the past five years the local market has grown steadily.
“As the number of high net income earners in Australia has grown, alongside the country’s overall wealth, so too has the local appetite for high end fashion. The tables have turned and local consumers now account for around 70% of luxury retail sales within Australia.
“Many of the exclusive men’s brands already active in the Melbourne CBD market – the likes of Ermenegildo Zegna, Georgio Armani and Paul Smith – and others, such as Salvatore Ferragamo and Dior Homme, are currently looking for more space in the Melbourne CBD with a view to establishing standalone men’s stores.
“Australia’s maturing male demographic is becoming more fashion savvy."
Mr Taranto said this increased demand was leading to a significant push from luxury brands for non-traditional addresses with enhanced street appeal, off Collins Street. He said rents on the southern side of Collins Street were now sitting close to $5,000/sqm, making it increasingly unattainable for many of the brands looking to enter the market.
“With more options now available in the Melbourne market, and the the likes of David Jones expanding further into the luxury market, all brands entering the CBD market will need to take a closer look at what is sustainable in the long term,” he said.
The Masons transaction was the latest in a string of luxury leasing deals negotiated in 2016, including Omega’s first-to-market store (179 Collins Street), Cartier’s new flagship (90 Collins Street), Bang & Olufsen (33 Russell Street), Van Cleef & Arpels (101 Collins Street), Chopard (101 Collins Street), and Ferragamo’s new store at Crown Casino.