Linen lovers can prepare to get cosy with the news that fashion-forward Australian home décor brand Adairs is set to open in Wellington.
Established in 1981 Adairs has more than 150 stores in Australia and is the leading independent retailer for manchester including bedroom, bathroom, homewares, furniture and kids.
The company is taking a seven-year lease that is due to commence in March 2017, after the landlord was able to combine existing tenancies. This will be Adairs’ third New Zealand store after announcing in August that it was opening its maiden store in Auckland in October with a second store to open in Bay of Plenty prior to Christmas.
Dharmendra Mistry, Associate Director of Retail at CBRE, says that Adairs opening its first store in Wellington continues the recent increasing demand from Australian retailers in the capital.
“The recent signing of Adairs follows confirmation that Cotton On will take additional space at Capital Gateway extending its current Cotton on Kids store on-site, which opened in late 2016.
“We have seen increasing interest from international retailers in Wellington, however a lack of Prime space is forcing tenants away from sought after locations on the Lambton Quay and the Golden Mile,” says Mistry.
“Large format retailers are unlikely to find a suitable size space in the CBD and that is creating significant interest in city fringe locations like Capital Gateway, which is still in close proximity to Lambton Quay and Wellington’s CBD.”
The owner of Capital Gateway, Zeta Investments Limited, was aware of the recent popularity of Wellington retail space and adapted its strategy to attract retailers to the centre.
Mistry says, “We advised the landlord of interest in Capital Gateway. They were very keen to accommodate these renowned Australian retailers as they felt they would be a good fit amongst Freedom Furniture, Early Settler and Pumpkin Patch who have been on-site for over 20 years. Consequently we were able to come up with a strategy with Zeta Investments Limited to move tenants around and amalgamated tenancies to create the space."
“Capital Gateway is currently 100% occupied but an opportunity will soon become available through CBRE for 400sqm.”
Research released in 2016 by CBRE outlined the increased demand for Prime Wellington retail space, particularly from international retailers.
Richard Carr, Research Analyst at CBRE, says that we are now seeing stronger demand for the better secondary locations, as retailers are forced to focus their attention away from the Prime area due to a lack of available stock.
“Sites for retailers, in particular large format retailers, remain scarce within the confines of the CBD. However areas such as Capital Gateway provide an opportunity which allows these retailers to leverage the resurgence of retail within the city.
“The ongoing interest from international retailers to enter into the local market provides further support to the city’s economy, which is reflected in the most recent economic confidence survey,” says Carr.
For New Zealand/international news or global stories, follow us on Twitter.
ABOUT CBRE GROUP, INC.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.