Getting the mix right: Leasing commercial offerings below apartment buildings
Underneath a new apartment building in Sydney’s eastern suburbs, agents were keen to talk up the quality of the retail offering to potential buyers. There was going to be a gourmet deli, a flower shop and a quality cafe, they said.
Later on, when most of the units were sold, the new tenants appeared in the retail spaces: KFC and Hungry Jacks.
Not five minutes away, the owner of a retail area under a big apartment tower applied for an extension of the space and modifications to bring in a fine-dining restaurant. The residential owners above eagerly agreed. But they were shocked, months later, to watch a burger bar moving in.
“It can be really hard to 100 per cent guarantee great tenants are going to come in and operate in an early off-the-plan campaign,” said Blake Schulze, national director residential at Colliers. “But we will always push developers to stick to their original plan and not accept the first tenant who applies for the space.
