726 Hay Street, Perth (Former Walshes Department Store)

At the time of being appointed to lease this building it had been characterised by reasonably short term (1-3 year) leases and was viewed by the retail market as being a location that hadn’t worked.

The property was repositioned with a “significant” brochure and asking rental rates were raised substantially over those which had previously been achieved. This strategy aimed to elevate the offering such that it was viewed as a premium location and therefore by implication that the rent reflected the prominence of the location.

Temporary tenants were engaged in the location such that the tenancies would not be vacant and the Landlord would not be seen as being “desperate” to lease the premises as had perhaps previously been the case. The result had been firstly, the long term leasing to Vintage Cellars, a subsidiary of Coles Myer, followed by a number of successful lettings to, Telstra, Jaws Japanese Restaurant and later to Florsheim, all on long term (7 plus year) Leases.

The property now enjoys fixed rental increases at rates of some 16-19% greater than that previously being achieved together with enjoying substantial improved lessee covenant.