‘Not just a place of transaction’: Melbourne’s most popular shopping strips revealed

Centre Road in Bentleigh has the lowest vacancy rate of any major shopping strip in Melbourne, defying a citywide increase in empty stores.

Real estate agency Fitzroys released its annual Walk the Strip report on Friday, revealing the overall vacancy rate for 37 surveyed shopping strips was 7.2 per cent, up from 6.5 per cent last year, but still below the long-term average.

Luke Iles, of gourmet butcher The Lucky Pig in Bentleigh, believes Centre Road achieved the lowest vacancy rate for the first time as smaller speciality shops worked to establish a local clientele alongside big supermarkets.

“More often than not, the traders will know your name,” Iles said, suggesting this kept people coming back and encouraged more businesses to set up nearby.

“Centre Road is quite diverse. There’s a really big community spirit in Bentleigh. A lot of people have been trying to do their part and shop local.”

Centre Road’s vacancy rate of 1 per cent is just below that of Church Street in Brighton, which often has the fewest empty shops in Fitzroys’ survey.

Meanwhile, much of Bridge Road in Richmond is struggling.

The vacancy rate in the section between Punt Road and Lennox Street has climbed to 18.7 per cent, up from 13.8 per cent last year, but below the pandemic nadir of 24.5 per cent in 2021.

The number of empty shops also increased in Camberwell Junction, Bay Street in Brighton and Hawksburn Village in Toorak.

Port Melbourne’s Bay Street also experienced a vacancy uptick, and a fire recently shut a Pilates studio.

More than 10 per cent of shops on Acland Street in St Kilda also remain empty, adding to scrutiny of the once-adored shopping strip. However, the area’s vacancy rate is below its pandemic peak.

James Lockwood, director of retail leasing at Fitzroys, said the Victorian government’s activity centre program would likely boost shopping strip foot traffic.

But, he said, many landlords may be waiting for this to be finalised before reviewing their holdings and finding new tenants. Lockwood also cited land taxes as another factor.

“This may have contributed to the modest rise in vacancies we’ve seen in strips such as Burke Road and Camberwell Junction, Bay Street in Brighton, High Street, Armadale, and Malvern Road, Hawksburn,” he said.

Strips with vacancy rates which improved against the grain included Puckle Street in Moonee Ponds (down to 2.4 per cent) and Glen Huntly Road in Elsternwick (down to 3.4 per cent).

Lockwood said the best-performing precincts had an evenly balanced tenancy mix, at least one major supermarket, development activity and solid transport connections.

“Melbourne’s strips are demonstrating a tremendous resilience,” he said.

“In the face of planning uncertainties, and cost-of-living pressures, strip vacancies remain below their long-term average.”

Lockwood singled out Puckle Street as a “poster child” of apartment development boosting a retail precinct.

Elsewhere, he expected the major revamp of the Jam Factory in South Yarra to eventually help Chapel Street vacancy rates recover once the development was complete.

Regarding Bridge Road, Lockwood said approvals for several new medium-rise residential and office buildings should also lead to improved vacancy rates in the struggling part of Richmond.

Bentleigh Traders Association treasurer Andrew Moran said business types were also important for keeping a broader shopping strip’s vacancy rate low.

He believed Centre Road benefited from having fewer tobacconists than other places.

“It’s not just a place of transaction,” Moran said. “It’s a place of coming together.”

Luca Ragni, the acting Glen Eira mayor, said a mix of bakeries, op shops, artisanal stores and cafés helped Centre Road thrive. “With easy access by train, bus and car, getting here is simple,” he added.

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