Food operators show appetite for takeaway leases amid pandemic
Food and beverage operators are seeking smaller, kitted-out premises as the demand for takeaway and home delivery grows due to the coronavirus pandemic.
Fitzroys revealed that ready-to-go retail spaces are being snapped up as businesses adapt to changes in the hospitality sector.
Associate Director James Lockwood says the company has secured 72 leases since the State of Emergency was declared, including 45 retail deals.
Half of the leases were signed by hospitality operators and almost all of the deals were on Melbourne’s popular shopping strips.
“This is quite amazing considering the restrictions have affected a number of cafés and restaurants,” Lockwood says.
“Smaller, fitted-out spaces allow operators to maintain a presence in the market without necessarily having to commit to extensive fit-outs or higher rents for larger spaces.”
With more people working from home and shopping locally due to restrictions, businesses are opting for retail strip properties with rents of around $50,000 to $75,000 per year rather than forking out around $100,000 per annum for a CBD premises.
“Tenants are risk averse and almost all leasing transactions have been struck under $100,000 as tenants are not willing to take on higher rentals,” Lockwood says.
Several new leases have been taken out on Glenferrie Rd in Malvern, with eateries Pizza 888, Assaggi Italiani and ScoopyDoo Gelato all securing premises on the popular street.
