The future of retail in the city? It’s not more retail

When Brisbane’s Myer Store wrapped up its final day of trade on July 31 after a 35-year tenure in Queen Street Mall, the centre’s owners – retail property giant Vicinity Centres and superannuation property group ISPT – were quick to offer an optimistic view of the building’s future.

In a joint statement to announce the centre’s new name, they said Uptown “captures the vision for the destination’s future” and reflects “the intended brand and market position”.

After 35 years, The Myer Centre (now Uptown) closed its flagship department store on July 31.Credit: Courtney Kruk

Three months on, and that vision is yet to materialise.

Speculation that the centre, marked for a potential $500 million extensive refurbishment, could include an aquarium, escape room, arcade and indoor ski-field proved to be just that – speculation.

On Thursday, a spokesperson for Vicinity Centres said Uptown’s joint owners looked forward to announcing plans for the centre “soon”.

“Our team has been refining our concepts for Uptown aligned with council’s ambitions for, and works within, the Queen Street Mall,” they said.

“We’re exploring if there are any interim uses for the individual store itself whilst we finalise medium-term plans.”

Earlier this year, two landmark Queen Street Mall venues – the Pig ‘N’ Whistle and Milano – were demolished as part of a Brisbane City Council plan to improve connectivity between the CBD and South Bank. More seating and shading will take their place.

Nearby, council also purchased privately owned Reddacliff Place, which is situated between Brisbane Square and the Treasury Casino. Lord Mayor Adrian Schrinner said the purchase of the site was to “preserve it as a public open space”.

The Treasury Casino building, one of three assets agents Sam McVay from McVay Real Estate and Paul Noonan from JLL have been appointment to sell. Credit: Rhett Hamilton

The Treasury Casino complex in Brisbane, which includes the heritage-listed Treasury Casino building, the Treasury Hotel building and the Treasury car park, is another iconic fixture with a question mark over its future.

The buildings are set to be vacated early next year when the $3.6 billion Queen’s Wharf development begins operating. In August, Star Entertainment appointed agents Sam McVay from McVay Real Estate and Paul Noonan from JLL to sell the three buildings after fund manager Charter Hall pulled out of plans to acquire the space and turn it into a hotel and high-end retail precinct.

Star is hoping to secure $200 million from the sale, with an official six-week campaign to sell the properties launching today.

McVay said they’ve already begun fielding enquiries, with parties from all over the world – “London, the Middle East, Asia and Australia” – showing interest in both the buildings and Brisbane itself.

DFS’ three-level T Galleria Emporium in Queen’s Wharf will cover more than 6000 square metres of retail floorspace and deliver more than 100 luxury brands to the area. Credit: Queens Wharf Brisbane

The portfolios of the potential investors are just as far-reaching: “From the arts and entertainment, through to hotel investors, all the way through to retail investors,” McVay said.

A retail precinct might’ve felt like a top contender, at least for the casino building, had Hong Kong-based retail giant DFS, one of the world’s leading luxury travel retailers, not already signed on at Queen’s Wharf a stone’s throw away.

DFS’ three-level T Galleria Emporium will cover more than 6000 square metres of retail floor space and deliver more than 100 luxury brands to the area.

Within Treasury’s and Uptown’s current state of flux is a bigger question to be asked: should more retail, once a cornerstone of Queen Street Mall and the inner city, even be in the mix?

Before Myer vacated the mall, a CBRE survey found a 19.5 per cent retail vacancy rate in the CBD. This comes on the back end of the pandemic, which saw a spike in online shopping and a shift away from bricks-and-mortar retail.

QUT professor and retail expert Gary Mortimer said the pandemic, combined with more flexible working arrangements, has seen a drop in people choosing to shop in the CBD.

“They’re more likely to go to big centres like Chermside, Mount Gravatt, Carindale and Indooroopilly, where they can essentially park for free and have a broader range of offerings and services.”

The lower end of Queen Street Mall towards Edward Street has been carved out as a luxury brand precinct. The mall’s mid-section is youth and fast fashion focused. The river end’s future remains unclear. Credit: Courtney Kruk

He breaks the CBD down into precincts.

“If we think about entertainment precincts, we’re about to have Queen’s Wharf open and that will be a significant entertainment precinct,” Mortimer said.

“We’ve [also] got the redevelopment of Eagle Street, which again will have a very significant entertainment precinct with restaurants and bars.

“The bottom end of the mall and Edward Street is definitely a luxury brand experience. The centre of the mall – it’s very much a precinct around fast fashion and youth.

“At the top of the mall, there’s not much happening.”

As it stands, Mortimer doesn’t think there is enough market demand to sustain another retail precinct.

Zooming in on Uptown, with the five vacant floors that Myer once occupied and significant underground parking, he believes the smartest way forward is to look at what the CBD is missing.

“I think generally about medical centres. You could make the old Myer centre a multi-level health hub, possibly leased by multiple tenants or something like Ramsay Health Care,” he said.

“You could have a pharmacy on one floor with allied health services – physiotherapy, podiatry, optometry, cosmetic injectables, dentistry, even specialist rooms.”

Justification to shift away from retail can be found further down the mall. “I think the telltale signs would be the vacancies that still inundate Wintergarden, including the food court,” Mortimer said.

“What we’re seeing with Uptown and, to a lesser extent, Wintergarden is some really good opportunities now for commercial property leasing firms and Brisbane City Council to come together and look at ways we can better utilise that space.”

Sam McVay said they’ve already been fielding enquiries for the Treasury buildings, with parties from all over the world – “London, the Middle East, Asia and Australia” – showing interest in both the buildings and Brisbane itself. Credit: Courtney Kruk

On inserting retailers into the Treasury Casino building, Mortimer believes a boutique hotel would make more sense.

“I’m always loath to suggest more retail when we’ve got essentially two major CBD centres that are filled with vacancies. I’m not sure suggesting more retail space actually fixes the problem,” he said.

Despite Queen’s Wharf’s hulking suite of rooms on the way, more accommodation is necessary, especially ahead of the Olympics.

“There’ll be a greater international demand for accommodation [during that time],” Mortimer said. “But the thing about boutique hotels is they’re not necessarily designed for international tourists.

“They’re really designed for staycations and people that are local to Brisbane to go and have an amazing experience in the city.”

McVay is open to exploring all avenues for the Treasury Casino space, but would ideally like to see something that “activates the ground floor” and appeals to a broader demographic of the local population.

Right now, the crossroads are bumpy. Uptown is probably struggling to attract new retailers without a major tenant. The mall is still clearing traces of Milano and Pig ‘N’ Whistle so that work to improve the thoroughfare can begin. An interest rate rise is clocked for next week.

And, as McVay put it, we can continue to speculate on the Treasury trio, but really it will be the next six weeks that will reveal what the market really thinks.

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