Mount Gambier’s main street has evolved from shopping to services

Knocking down a derelict complex kicked off the rejuvenation of Mount Gambier’s main drag, with a record number of shops filled. See the biggest commercial sales this year.

The once distressed Mount Gambier main street is recovering with a record number of shops filled in the past 12 months.

Herbert Commercial senior property consultant Matt Alain said the sector had remained stable during the pandemic but a push to shop locally has sparked confidence and the building boom had spiked demand for industrial sheds and land to build them on.

“Commercial had just been gradually ticking along,” Mr Kain said.

Matt Kain, Herbert Commercial senior property consultant. Picture: Herbert Commercial

“That has continued, albeit the main street is the big outlier, this little unique pocket of our commercial world that is a recovery of the main street.

“We’ve filled a greater percentage of leases in the main street to a normal year in the last 12 months.”

While Mr Kain said vacancies were no higher than other regional towns, the number of prominent untenanted buildings left the main street feeling empty for years.

“The main street was distressed and had been since the Marketplace was built,” he said.

“It has taken six or so years to transform into more of a commercial business hub in the true sense, rather than a retail hub.

“There is strength in the main street shopping again off the back of those offices and consulting businesses coming in.”

Mr Kain said the catalyst was the bulldozing of the Fiddler and Webb building and the long awaited development of Aldi in its place.

“For four or five years we had a derelict former mixed shopping complex that was going to rack and ruin with broken windows,” he said.

“Until they started knocking that down, people were reluctant to believe that there was good coming around the corner.

“The moment that they put the fences up and started with the demolition, we had inquiries.”

Late last year, Coles moved to the same area leaving a large vacant building in what was once a bustling part of the CBD.

While its further remained unknown Mr Kain was confident a West End recovery would follow with at least two new tenants the former She’s Apples building, plus new food, homewares and confectionery businesses to open on Commercial Street West.

“Most people on the street are very negative about what that represents but we’ve seen the redevelopment of sites enough to know that it’s a case of when and whatever happens, there will be a benefit to that whole section of town,” he said.

“We can see the old She’s Apples very quickly transforming into it’s own little micro economy location,” he said.

Mr Kain also said the lack of return on cash investments had increased sales of commercial real estate with people willing to pay more for a lower return.

Exclusive CoreLogic data reveals the most expensive commercial properties sold in Mount Gambier in 2021 so far.

TOP THREE SALES IN 2021

20 Sturt St, Mount Gambier

The Mt Gambier Medical Consulting Suites were auctioned collaboratively by Burgess Rawson & Associates and Herbert Commercial recording a record low yield with a sale price of $2,920,000.

20 Sturt Street, Mount Gambier. Picture: CoreLogic.

13 James Street, Mount Gambier

The Hip Pocket Workwear and Safety Building (freehold only) was sold for $1m by Ray White Fimmells Mount Gambier settling on February 26.

13 James Street, Mount Gambier. Picture: CoreLogic

93 Commercial Street, West Mount Gambier

These four main street shopfronts sold for $800,000 settling on March 12 with the help of HL Gebhardt & Associates.

93 Commercial Street, West Mount Gambier